Sabre announced a restructuring of its airline and agency-focused businesses on Thursday in a move that includes about 800 layoffs. The move follows the approximately 400 workers that the travel technology company laid off in April. Recent stay-at-home orders have gutted the travel industry, which drives revenue for the Southlake, Texas-based company.
“While we had to put certain initiatives and technology investments on hold in response to the Covid-19 pandemic, we remain steadfast in our commitment to helping our customers operate more efficiently, drive revenue, and offer personalized travel experiences that benefit travelers, travel suppliers, and agencies,” said president and CEO Sean Menke in a statement. “We have taken this opportunity to accelerate the organizational changes we began in 2018 to address the changing travel landscape.”
Menke repeated his credo that Sabre needs to focus on providing “retailing, distribution, and fulfillment” services to airlines and hotels. He reaffirmed the company would continue to with its effort since last fall to pursue the low-cost carrier market with passenger and operational software from its acquisition of Raddix.
Sabre will also push ahead with building a property management system that could be used by hotel chains, though its initial partner Accor may be slower in participating now due to the crisis. Sabre plans to migrate its information technology systems to Google Cloud’s services, which include advanced data analytics.
A spokesperson was unavailable at publication time to say how many Sabre full-time employees would be left after the cuts are completed by September 2020. It’s believed the company had about 1,900 workers worldwide before the cuts, though some were on temporary contracts. Sabre has recently been tussling with Lufthansa Airlines Group over how airlines distribute tickets to travel agencies. In April, it abandoned a bid to acquire the technology company Farelogix. Sabre’s revenues have suffered due to the crisis.
Sabre’s stock price rose in early morning trading at a pace above the U.S. market index average for the morning.
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