[Travel News]: Booking.com announces to reduce approximately 10% of its global workforce
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The following is the [Travel News]: Booking.com announces to reduce approximately 10% of its global workforce from [Booking Holdings] recommended by TheTourAttraction.com:
Booking Holdings still expects to reduce Booking.com’s global workforce by up to approximately 25%, including those employees impacted by the Approved Plan.
On August 4, 2020, Booking Holdings Inc. (the “Company”) filed a Current Report on Form 8-K (the “Original 8-K”) with the U.S. Securities and Exchange Commission to announce restructuring actions at Booking.com as a result of the impact of the COVID-19 pandemic on Booking.com and the travel industry. This Current Report on Form 8-K/A amends and supplements the Original 8-K to disclose the Company’s estimate of certain additional costs related to the restructuring actions.
On August 4, 2020, the Company announced its intention to reduce Booking.com’s global workforce by up to approximately 25% as a result of the impact of the COVID-19 pandemic on Booking.com and the travel industry.
On September 3, 2020, the Company approved a plan for Booking.com’s reduction in force that impacts approximately 10% of Booking.com’s global workforce (the “Approved Plan”), which does not include intended reductions in force in certain other countries (including the Netherlands and the United Kingdom) where Booking.com continues to be engaged in the process of consulting with its works councils, employee representatives and other relevant organizations. Restructuring actions under the Approved Plan commenced on September 7, 2020 and are expected to be substantially completed by December 2020. In connection with the Approved Plan, the Company expects to incur employment termination and related costs in the estimated range of $50 million to $55 million. The Approved Plan does not include actions related to the leased facilities impacted by the reduction in force and other contract terminations or modifications, as the Company’s evaluation of various alternative courses of action is still in progress.
As the Company consults with works councils, employee representatives and other organizations regarding its intentions, the Company expects to develop more clarity on the timing, the number of affected employees, financial impact and other aspects of the contemplated cost reduction actions in the remaining countries that are not part of the Approved Plan. Subject to such ongoing consultations, the Company still expects to reduce Booking.com’s global workforce by up to approximately 25%, including those employees impacted by the Approved Plan.
Because the Company’s intentions with respect to its restructuring actions at Booking.com are subject to the consultation processes described above, working through legal requirements in multiple jurisdictions and completing our analysis of related costs, the Company is currently unable to make a good faith determination of an estimate or range of estimates of employment termination and related costs associated with the countries not included in the Approved Plan or other restructuring costs required by paragraph (b), or an estimate or range of estimates required by paragraphs (c) and (d) of Item 2.05 of Form 8-K with respect to such actions. The Company will file an additional amendment or amendments to the Original 8-K after it determines such estimate or range of estimates. This Current Report on Form 8-K/A supplements and does not supersede the Original 8-K. The remainder of the Original 8-K is unchanged. Accordingly, this Current Report on Form 8-K/A should be read in conjunction with the Original 8-K.