TripAdvisor is eliminating 200 workers, according to reports, to cut costs as competition from Google intensifies. The online travel information provider had just over 3,800 staff at the end of September, according to Bloomberg data.
The company is reported to have said recently, it was “prudently reducing and re-allocating expenses in certain parts of our business to preserve strong profitability."
Alphabet’s Google has launched new travel search tools that compete with TripAdvisor, adding its own reviews of hotels, and other destinations. This has forced several companies, including TripAdvisor, to buy more ads from the search giant to keep online traffic flowing.
In early November, TripAdvisor shares slumped more than 20 percent in one day after the company reported dismal third-quarter results. It said the main challenge was “Google pushing its own hotel products in search results and siphoning off quality traffic that would otherwise find TripAdvisor via free links and generate high margin revenue in our hotel click-based auction." This news was first reported by Bloomberg.