Travel Agency Agoda will cut 1,500 staff in Asia as part of its cost cutting measures, industry media reported this week.
The worldwide travel and hospitality industry has been hit hard by the coronavirus pandemic shuttering airlines, hotels and agents alike.
Agoda said they held off on making staff redundancies for as long as possible but must now let go of some 1,500 staff across Asia to ensure the company’s survival.
Travel Industry media website Skift previously reported that CEO John Brown had rejected his salary for 2020 as part of a first round of cost cutting measures but that wasn’t enough.
In an email to staff, seen by Thai Enquirer, Brown promises that there would be only one round of layoffs.
Agoda is owned by Bookings Holding alongside other well known travel agencies like Kayak and Open Table. Both those companies have also let go of staff.
Grim picture for the travel industry
On Tuesday, Thai Airway’s plan for rehabilitation was approved by the Thai government’s cabinet and will now be submitted to the bankruptcy court.
Thai Airways will also no longer be a state-owned industry as government entities will divest to make it majority-private owned.
Hotel group MINOR International reported a net loss of 1.77 billion baht in the first quarter of 2020 due to the impact of the coronavirus pandemic this week.
The company said it would be raising capital to offset the losses.