The demand crisis for coronaviruses has taken another bite: TripOctions, the unicorn for business travel, based in Palo Alto, reportedly fired hundreds of employees yesterday.
According to this post on Blind – written by someone with a verified TripActions email address – the company fired 350 people. Business insider reported the same number yesterday. While Wall Street Journal The layoffs amount to a quarter to a fifth of the start-up's total workforce, citing a person who is familiar with the situation.
In an email to CrunchBase News, TripActions confirmed that it had cut jobs at COVID-19 in response to the global health crisis – saying it had "cut all nonessential expenditures." Although it didn't exactly confirm how many employees it fired.
"[We] made the very difficult decision to reduce our global workforce in line with the current climate," said TripActions wrote in the statement. "We look forward to the strength of the global economy and business travel inevitably returning and allowing us to put our colleagues on the backburner to rejoin our mission of making business travel effortless for our customers and users."
"This global health crisis is unlike anything we have ever seen in our lives, and our hearts go out to everyone around the world, including our own customers, partners, suppliers and employees," she added. “The corona virus has [a] far-reaching effects on the global economy. Every company is affected, including TripActions. Although we have been lucky enough to have recently raised funds and secured debt financing, we are taking appropriate steps in our business to ensure that we will continue to be there for our customers and their travelers in the future. "
According to the Blind article, TripActions offers redundant employees and health insurers a week's severance pay until the end of the month. "With [the coronavirus pandemic] you think they would do better," wrote the OP. The layoffs took place via zoom call, it was also said.
We asked TripActions for a comment.
Travel launches are facing an unprecedented nuclear winter as demand has dropped off a cliff worldwide – with little prospect of a major freeze change in most business trips in the coming months as COVID-19 infection rates outside of China continue to grow exponentially.
TripActions is, however, one of the highest rated and best funded startups of its kind. Last month, a $ 500 million credit facility was secured for a new corporate product when we found Crunchbase had a tracked equity funding of more than 480 The company had $ million million, including $ 250 M Series D TripActions raised in June by investors such as a16z, Group 11, Lightspeed and Zeev Ventures.
Before the layoffs, the company had already cut out all hires, a former technical sourcer for the company wrote on LinkedIn.