Latest News by Industry
Travel tech company Sabre Corp (SABR) is cutting 15% of its workforce hoping to save $200 million annually.
The Southlake, Texas-based company had reported nearly 7,500 people on it rolls by the end of 2022, according to a report in Skift.com. That would mean that this wave of layoffs could affect 1,100 jobs.
“As a new CEO, it pains me to take these steps, especially so early in my time in the role,” Ekert said at the call. “I do not take this decision lightly, especially given the immense respect that I have for all of my Sabre colleagues around the world. However, I am confident that these actions will better position us for the future and put us on a direct path to achieving our financial and strategic targets.”
The company said the majority of the job cuts will take effect by the end of the second quarter. It is aimed at streamlining the layers of the company’s management and employee base, according to a company official.
The company provides operational software and distribution services to travel agencies, airlines, and hotels.
The job cuts are set to affect the company’s offices across the world. The company has 59 offices worldwide as of 2022.
Sabre, which had been hit by the COVID-19 pandemic travel clampdowns around the world, hopes to achieve positive cash flow this year for the first time after the pandemic peaked, according to the Skift report.
“Generating positive free cash flow and de-levering the balance sheet are our most important financial objectives,” Ekert said.
The company has posted first quarter 2023 revenue of $743 million, up 27% year-over-year.
Sabre reported a net loss of $104 million and diluted net loss per share attributable to common stockholders of $0.32.
The company’s adjusted EBITDA totaled $58 million.
A Sabre press release said the company is prioritizing investment in its strategic growth initiatives that include continued focus on tech investment and plans to grow into other market segments and geographies. “That includes expanding airline tech offerings to existing and new customers. And with the recent acquisition of Conferma Pay and partnership with Mastercard, the company has big plans to expand payments services.”