Tripadvisor Inc. is implementing additional cost-cutting measures as the COVID-19 pandemic continues to take a toll on the travel industry.
In conjunction with the latest earnings report, Needham-based Tripadvisor revealed on Thursday it is furloughing approximately 850 employees, or 22% of its workforce, most significantly at its restaurant reservation subsidiary The Fork.
The news comes after the 20-year-old travel metasearch company cut more than 900 employees, or approximately one-quarter of its total workforce, last week. It was the second time Tripadvisor laid off workers in 2020.
In a letter to shareholders released on Thursday, the company said it expects its actions to generate generate approximately $45 million and $65 million in cost savings versus its Q1 operating expense level in Q2 and Q3, respectively.
"As an industry, we are currently experiencing the darkest of days," CEO Steve Kaufer and CFO Ernst Teunissen wrote in the letter to shareholders. "Industry data points show consumer demand down 80% to 100% year-over-year. Online travel agents, hotels, activity suppliers, destination marketing organizations, and restaurants comprise a majority of Tripadvisor's revenue, and our partners have significantly reduced their advertising budgets to align with the reality that there is essentially no consumer travel demand."