The TripAdvisor homepage
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TripAdvisor is planning to cut 200 jobs, or 5% of its total workforce, a source familiar with the matter confirmed to CNBC on Thursday. Most of the cuts are said to be in the company’s experiences division.
Experiences, which includes a range of activities from cooking classes to guided tours, had been a source of growth for TripAdvisor in recent years. But in the latest earnings quarter, adjusted earnings from the experiences and dining division fell double digits versus the same period a year ago.
Bloomberg first reported the job cuts on Wednesday.
The layoffs come as the online travel operator struggles to fend off competition from Google and other competitors.
TripAdvisor CEO Stephen Kaufer referenced the competitive space on the company’s third-quarter earnings call in November, saying, “Google has gotten more aggressive.”
The push from Google has also challenged Expedia and other travel operators that relied on the search engine to drive traffic to their sites.
In November, CFO Ernst Teunissen said the company was looking at three areas to reduce costs, and one of those was experiences and dining. Teunissen said they were looking at cutting $60 million to 80 million altogether.
Suntrust analyst Naved Khan said the targeted cost cuts are consistent with expectations.
Khan, who is holding on to his $43 price target, sees an opportunity to reduce costs in TripAdvisor’s hotel business due to “lower branded ad spend.”
TripAdvisor’s stock closed at $30.56 on Thursday, a price that is down 45% from a year ago.