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TripAdvisor Layoffs: What Happened & Why?

In April 2020, online travel company TripAdvisor faced a significant workforce reduction, laying off 900 employees, which accounted for roughly 25% of its workforce. This decision came as a result of the severe impact of the coronavirus pandemic on the travel industry. In this article, we'll discuss what happened, why it happened, and the potential future impact on TripAdvisor's operations and strategy in the post-pandemic travel industry.

Why did TripAdvisor have layoffs?

The decision to lay off 900 employees at TripAdvisor was primarily driven by the economic pressures caused by the coronavirus pandemic, which severely impacted the travel industry. TripAdvisor's CEO and co-founder, Steve Kaufer, stated in a blog post that the pandemic had devastated the travel industry to a level he never expected. The company had already implemented cost-cutting measures, including furloughs and reduced discretionary spending, but the layoffs were necessary to adjust to the current environment.

As part of the transition, laid-off workers received severance packages, including severance pay, outplacement support, and some health insurance continuation in the US and Canada. Some workers were also placed on furlough, with the hope that they can return to the company later in the year. The remaining employees were asked to move to a four-day work week and take a 20 percent salary cut for three months starting in June, in order to protect about 100 jobs.

Financial Impact and Future Directions

TripAdvisor is strategically restructuring to maintain robustness and agility amid the pandemic's impacts on travel. This involves recalibrating its operational focus towards emerging trends and potential shifts in consumer travel behavior expected in a post-coronavirus landscape.

By doing so, TripAdvisor aims to fortify its position and capitalize on the eventual rebound of the travel sector. This approach reflects a proactive adaptation to the changing market, ensuring the company remains competitive and well-prepared for future opportunities in the travel industry.

Impact on Industry

The travel industry has been severely impacted by the coronavirus pandemic, with hotels at near 100% vacancy, grounded planes, and empty restaurants. The future of the industry is uncertain and will require adjustments and adaptations to the new environment. TripAdvisor's layoff of 900 workers reflects the challenges faced by travel companies due to the pandemic and the need for cost-cutting measures. These layoffs also indicate the severity of the situation and the need for companies to adjust and adapt to the current circumstances.


TripAdvisor's layoff of 900 employees highlights the devastating impact of the coronavirus pandemic on the travel industry. Driven by economic pressures, the company implemented cost-cutting measures to maintain financial stability. These layoffs, along with strategic shifts, aim to position TripAdvisor for success in the evolving market. The broader sector may also face similar challenges, requiring adjustments and adaptations. TripAdvisor's actions could signal potential future implications for the company and the industry as they navigate the post-pandemic landscape.