{"id":17858,"date":"2020-03-29T18:26:10","date_gmt":"2020-03-29T18:26:10","guid":{"rendered":"https:\/\/rbsitsoftwaresolution.com\/blog\/tripactions-lays-off-hundreds-amid-covid-19-travel-freeze.html"},"modified":"2020-03-29T18:26:10","modified_gmt":"2020-03-29T18:26:10","slug":"tripactions-lays-off-hundreds-amid-covid-19-travel-freeze","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/tripactions-lays-off-hundreds-amid-covid-19-travel-freeze.html","title":{"rendered":"TripActions lays off hundreds amid COVID-19 travel freeze"},"content":{"rendered":"

The coronavirus demand crunch has taken another bite: Palo Alto-based corporate travel-focused unicorn TripActions<\/a> has confirmed laying off hundreds of staff.<\/p>\n

Per this post on Blind<\/a> \u2014 written by someone with a verified TripActions email address \u2014 the company laid off 350 people. Business Insider<\/a> reported the same figure yesterday, and the <\/span>Wall Street Journal<\/a> said the layoffs amount to between one-quarter to one-fifth of the startup\u2019s total staff, citing a person familiar with the situation.<\/span><\/p>\n

Update:\u00a0<\/strong>A spokesman for TripActions <\/a> told us the number of impacted employees impacted is \u201cless than 300\u201d \u2014 although he qualified the remark by saying the figure includes 25 people who were offered other roles within the company.<\/p>\n

In an earlier email to Crunchbase News<\/a> TripActions confirmed axing jobs in response to the COVID-19 global health crisis \u2014 saying it had \u201ccut back on all non-essential spend.\u201d It did not confirm exactly how many employees it had fired at that point.<\/p>\n

\u201c[We] made the very difficult decision to reduce our global workforce in line with the current climate,\u201d TripActions wrote in the statement. \u201cWe look forward to when the strength of the global economy and business travel inevitably return and we can hire back our colleagues to rejoin us in our mission to make business travel effortless for our customers and users.\u201d<\/p>\n

\u201cThis global health crisis is unlike anything we\u2019ve ever seen in our lifetimes, and our hearts go out to everyone impacted around the world, including our own customers, partners, suppliers and employees,\u201d it added. \u201cThe coronavirus has had [a] wide-reaching effect on the global economy. Every business has been impacted including TripActions. While we were fortunate to have recently raised funding and secured debt financing, we are taking appropriate steps in our business to ensure we are here for our customers and their travelers long into the future.\u201d<\/p>\n

Per the post on Blind, TripActions is providing one week of severance to sacked staff and medical cover until end of month. \u201cWith [the coronavirus pandemic] going on you think they would do better,\u201d the OP wrote. The layoffs were made by Zoom call, they also said.<\/p>\n

However TripActions\u2019 spokesman disputed the details about severance and medical cover, saying it is offering severance packages for U.S. employees that include two months of company-paid COBRA health insurance coverage, extending health benefits through the end of June, along with a minimum of 3 weeks salary.<\/p>\n

He added that U.S. employees who were given notice yesterday were told their last day would be April 1, 2020 \u2014 meaning their health benefits continue through the end of April.<\/p>\n

Travel startups are facing an unprecedented nuclear winter as demand has fallen off a cliff globally \u2014 with little prospect of a substantial change to the freeze on most business travel in the coming months as rates of COVID-19 infections continue to grow exponentially outside China.<\/p>\n

However, TripActions is one of the highest valued and best financed of such startups, securing a $500 million credit facility for a new corporate product only last month<\/a>. At the time, Crunchbase recorded $480 million in tracked equity funding for the company, including a $250M Series D<\/a> TripActions raised in June from investors including a16z, Group 11, Lightspeed and Zeev Ventures.<\/p>\n

Before the layoffs, the company had already paused all hiring, per one former technical sourcer for the company writing on LinkedIn<\/a>.<\/p>\n

This post was updated with additional comment from TripActions<\/em><\/p>\n

\n

Three travel startups tell us how they\u2019re responding to the coronavirus crisis<\/a><\/p>\n<\/blockquote>\n

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<\/a><\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/CTwOGQ0QZos\/<\/p>","protected":false},"excerpt":{"rendered":"

The coronavirus demand crunch has taken another bite: Palo Alto-based corporate travel-focused unicorn TripActions has confirmed laying off hundreds of staff. Per this post on Blind \u2014 written by someone <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19],"tags":[25],"class_list":["post-17858","post","type-post","status-publish","format-standard","hentry","category-enterprise-software","tag-enterprise"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t