In April 2020, Kayak and OpenTable, two brands owned by Booking Holdings, faced significant layoffs and furloughs due to the coronavirus pandemic's impact on the travel and dining industry. Affecting 400 employees, with 160 being laid off and 240 subject to furloughs or reduced work hours, these job cuts represented a considerable portion of the workforce. In this article, we'll discuss what happened, why it happened, and the potential future impact of these layoffs.
The layoffs and furloughs at Kayak and OpenTable were primarily driven by the economic impact of the coronavirus pandemic, which led to a significant drop in revenue and an expected prolonged downturn in the travel and dining industry. In an email to employees, CEO Steve Hafner explained that the company had considered various cost-cutting approaches but ultimately decided to trim office and personnel expenses by 20 percent to cope with the challenging situation. These job cuts were the first reported at Booking Holdings brands due to the pandemic, except for 48 contractors at Booking.com whose agreements were not renewed.
The CEO and his direct reports are taking salary reductions, with the CEO waiving his own salary for the rest of the year. While specific future strategies were not disclosed, it is plausible that Kayak and OpenTable could shift towards enhancing digital offerings, focusing on domestic travel options, or improving booking flexibility to adapt to the changing dynamics of the travel and dining sectors as they recover from the pandemic's effects.
The future impact on the travel industry may see more cuts at other Booking Holdings brands, indicating continued challenges and potential job losses due to the prolonged downturn caused by the COVID-19 crisis. As for Kayak and OpenTable, the layoffs and furloughs have affected 400 employees, with 160 being laid off and 240 facing furloughs or reduced work hours. These job cuts represent around 1.5 percent of Booking Holdings' global workforce and approximately 20-25 percent of the Kayak-OpenTable roster.
The coronavirus pandemic led to significant layoffs and furloughs at Kayak and OpenTable, affecting 400 employees and resulting in a 20% cut in office and personnel expenses. These job cuts, which represent a considerable portion of the workforce, may signal further challenges for Booking Holdings brands and the broader travel and dining industry. As the sector navigates the ongoing economic impact of the pandemic, strategic adaptations and innovations may play a crucial role in the recovery and future resilience of these companies.
