ONLINE retailer Orbitz Worldwide, which posted a net loss of US$287m for the September quarter, will sack 10% of its US staff by the end of this year.
CEO Steven Barnhart said the move would save US$20m and was necessary because all Orbitz businesses had slowed dramatically from October with little chance of the company meeting its 9% to 12% growth targets.
Barnhart claimed adeqaute business performance during the September quarter with net revenue up 9% and said the huge net loss was due to US$297m in write downs.
However, much of the growth came from outside the US, where bookings increased just 2%.
Orbitz has little choice but to cut costs. It is saddled with debt of at least US$600m and Barnhart indicated further cuts could be under way. Travel Trends.biz: November 11, 2008