Sabre Corporation to Cut 900 Jobs
Sabre Corp (NASDAQ:SABR), a travel technology company that provides software solutions for flight and hotel bookings, has announced that it will be slashing 900 jobs as part of its cost-cutting efforts. Some of these job cuts include unfilled positions, but the majority will result in layoffs.
A third of these job cuts will hit the company’s headquarters in Southlake, where about 300 employees will lose their jobs. Overall, the job cuts account for about nine percent of the company’s total global workforce of roughly 10,000 employees.
Following the layoffs, the company sent out a statement saying, “From time to time we adjust staffing to meet business requirements and opportunities, just like any well-managed company must do.”
Sabre Corporation serves the global travel industry, where it sells its software solutions to airlines and hotels in a number of countries across the world. Through the company’s software platform, airlines and hotels allow their clients to instantly book flights, make hotel reservations, and book car rentals.
Sabre Reported Loss in Recent Quarterly Results
However, the company has begun to witness a decline in its business in recent years. Part of this is due to the fact that airlines and hotels have started pushing their customers to directly make reservations via their company websites, instead of using Sabre’s platform.
The company also tried to diversify its offerings by reaching out to travel agents with additional services and deals. But travel agencies have been witnessing a slowdown in business as technology-savvy consumers surpass agencies to make direct bookings.
The mass layoffs at Sabre have been announced in the company’s latest quarterly earnings call, in which the company reported a net loss, owed in part to its cost-reduction efforts. The company reported that the layoffs and related cost-saving efforts added a charge of about $25.0 million to its latest quarter earnings.
Nonetheless, the company says that the cost-cutting efforts will help Sabre save about $110.0 million in annual savings through 2018. About $25.0 million of the savings are expected to be realized this year. The majority of the savings, however, will be achieved by next year.
“Sabre Corp. is laying off more than 900 workers,” Star-Telegram, August 1, 2017.