Business
The travel review giant said the cuts are part of a strategic effort to merge internal operations and sharpen its focus on experience-driven growth.
Tripadvisor is making sweeping changes. The Needham-based travel review platform said Thursday it plans to cut 20% of its workforce as it merges operations between its Tripadvisor and Viator brands, aiming to simplify its structure and focus more heavily on travel experiences.
In a company statement, Tripadvisor said it is realigning its operations to become an “experience-led and AI-enabled company.”
As part of this shift, the travel platform is combining its Tripadvisor and Viator divisions to focus more on user experience and to integrate artificial intelligence into its services, including plans to integrate its platforms into ChatGPT in the coming weeks.
The reorganization includes an $85 million cost-savings program that will take place through the rest of this year and into 2027. This plan involves reducing the global workforce by about 20%, affecting employees and contractors across Tripadvisor, Viator, and corporate roles.
Tripadvisor, a global company with the majority of its employees based outside the U.S., reported having approximately 2,860 full- and part-time workers as of Dec. 31, 2024.
If that number still holds, the company will be laying off roughly 600 employees. It is not yet clear where the layoffs will happen.
The company did not respond to requests for further comment.
“We will direct our focus, talent, and investment to what matters most, resulting in a simpler, leaner, and faster-moving organization,” said Matt Goldberg, CEO of Tripadvisor, during the earnings call.
The changes come after reports that activist investor Starboard Value, which holds a 9% stake in Tripadvisor, had been pushing for strategic adjustments, Reuters reports.
Tripadvisor has faced increasing challenges as it continues to rebound after the pandemic; most notably, company officials blamed its reliance on SEO.
However, its other brands — Viator, a global online booking experience platform, and TheFork, a European online restaurant discovery and booking platform —are growing.
While Tripadvisor saw third-quarter revenue dip 8% to $235 million, Viator saw 9% growth to $295 million, and TheFork saw 28% growth to $63 million.
During the Q&A section of the call, CFO Mike Noonan said the aim is to focus the growth on driving people to book user experiences, saying “no competitor can replicate” what they are doing in that space.
Goldberg added that he understands the changes will affect their workforce and is “grateful for the continued hard work and dedication.”
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