Booking.com expects significant savings from its "transformation"
The company expects to achieve annual savings of up to $450 million as a result of the organizational changes announced in early November
About one-third of the savings will come from job cuts, primarily at Booking.com, the company previously said. The remaining savings will come from modernizing processes, upgrading systems and reducing real estate, according to a regulatory filing this week.
Key takeaways
- Growth focus: Ewout Steenbergen, CFO of Booking Holdings, stated, "Our goal is to grow revenues faster than fixed costs over the next few years, reversing the recent trend;"
- Operational challenges: Steenbergen acknowledged feedback from teams about slower decision-making and unclear accountability, attributing it to an overload of new initiatives, including flights, payments and other ventures;
- Reinvesting in growth: Steenbergen emphasized the company's plans to reinvest in growth opportunities, targeting faster-than-market growth in areas such as flights, attractions, rideshare, Asia and fintech.
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