Technology

Sabre announces over $330 million in cost-saving actions to minimise COVID-19 impact

Travel tech giant Sabre is taking significant measures to strengthen its financial position in response to current industry conditions impacted by the COVID-19 pandemic.

Sean Menke, president and CEO of Sabre, said that while the global travel industry is facing challenges beyond what it has experienced before, he believes the company is well-positioned to navigate its way through the turbulent environment.

“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,” he said.

“We have identified and are in the process of removing over US$200 million ($338 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.”

As part of these cost reductions, Sabre has begun implementing several immediate actions with regard to its workforce and other costs during this difficult business climate.

These actions include a temporary reduction in base compensation pay for its US-based salaried workforce, including a 25 per cent reduction for its CEO, and Sabre will work with international employees on a country-by-country basis.

Additionally, there will be reduction in the cash retainer for members of its board, and Sabre’s 401(k) match program will be temporarily suspended for US-based employees who contribute to this.

On a global basis, Sabre is offering voluntary unpaid time off, voluntary severance and a voluntary early retirement program for staff. The company is also reducing third-party contracting, vendor costs and other discretionary spending.

Sabre noted the decline in global travel driven by the COVID-19 outbreak is expected to result in a proportional decline in Sabre Travel Network’s incentive expense, and a reduction in Sabre’s approximately $250 million semi-variable technology hosting costs.

In addition to the cost reductions, Sabre’s board of directors voted to suspend the payment of quarterly cash dividends on the company’s common stock, effective with respect to the dividends occurring after the March 30 payment.

Sabre has also suspended its share repurchase program and withdrawn its FY20 earnings guidance provided in February.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Cruise

Cruise Wrap: Viking to cruise the Mississippi, Aqua Expeditions’ virtual cooking classes, lines extend operations pause + MORE!

Has working from home not been as cruisey as you’d like? Sail into this fresh batch of cruise news and announcements.

Share

CommentComments

Events

Digital conference to unite hospitality sector

An online conference is set to bring together industry leaders to discuss the unprecedented economic circumstances caused by the COVID-19 outbreak, and what can be done collectively to rebuild confidence.

Share

CommentComments

Travel Agents

Flight Centre looks to offload Melbourne office, as Universal Traveller closes its doors

by Huntley Mitchell

Major changes at Flight Centre continue apace. Get up to speed with everything that is going down at the travel behemoth.

Share

CommentComments

Tourism

Are you eligible for the government’s eye-watering $130 billion JobKeeper payment?

Confused as to whether you’re in line for some much-needed government funding? All is explained here.

Share

CommentComments

Cruise

Vasco da Gama passengers finally disembark, as German ship confirms 41 coronavirus cases

The CMV ship has finally offloaded its passengers, as 39 people from a German cruise vessel are evacuated to Perth hospitals.

Share

CommentComments

Events

New dates announced for Tokyo Olympics

by Christian Fleetwood

The now rescheduled Olympic and Paralympic games in Tokyo will take place exactly a year after their original dates.

Share

CommentComments

Aviation

Aviation Wrap: Air NZ to shed thousands of jobs, record-breaking repatriation flight to Sydney + MORE

There’s plenty of important updates in this week’s Aviation Wrap, and a dash of feel-good news to boot.

Share

CommentComments

Events

Twiddling your thumbs? Submit your Women in Travel Awards entry now!

Have you found yourself with some more spare time due to the current slowdown in business activity? Ditch building a pillow fort and do this instead.

Share

CommentComments

Travel Agents

Upskill yourself in the next big travel trend

Think wellness travel was popular before? Just wait until you see it after a global health crisis.

Share

CommentComments

Aviation

Qatar Airways helps stranded Aussie travellers with new services

by Christian Fleetwood

Qatar Airways is adding an extra 48,000 seats to the Australian market to help stranded travellers get home.

Share

CommentComments

Destinations

Learn how to make your favourite Thai dishes for your chance to win!

If scoring a $50 voucher and learning a new skill were on your self-isolation to-do list, we have some great news for you!

Share

CommentComments

Hotels

Stamford temporarily closes several properties in Australia and NZ

The hotel company has shut the doors on some of its properties across the trans-Tasman due to a severe downturn in business amid the COVID-19 outbreak. Find out which ones here.

Share

CommentComments