SOUTHLAKE, Texas, 24 March 2020: Sabre Corporation, a technology provider for the global travel industry, announced Monday cash cuts of around USD200 million from its business in 2020.
“This is an unprecedented time. The global travel industry is facing challenges beyond what has been experienced before. We are fortunate that significant aspects of our cost structure are variable and are taking steps to help align our other costs with the current demand environment,” said Sabre president and CEO Sean Menke.
“Given the magnitude of travel decline and the unknown duration of the Covid-19 impact, we will continue to monitor travel activity and take additional steps should we determine they are necessary.”
“We have identified and are in the process of removing over USD200 million in cash costs from the business in 2020. Given the magnitude of travel decline and the unknown duration of the Covid-19 impact, we will continue to monitor travel activity and take additional steps should we determine they are necessary.”
Sabre has begun implementing several immediate actions with regard to its workforce and other costs.
It is immediately implementing a temporary reduction in base compensation pay for its US-based salaried workforce, including a 25% reduction for its CEO, and Sabre will work with international employees on a country-by-country basis. Cash retainers for members of Sabre’s board of directors will be cut.
On a global basis, Sabre is offering voluntary unpaid time off, voluntary severance and a voluntary early retirement programme. It is also reducing third-party contracting, vendor costs and discretionary spending.
The decline in global travel is expected to result in a proportional decline in Sabre Travel Network incentive expense, and a reduction in Sabre’s approximately USD250 million semi-variable technology hosting costs.