Last minute hotel booking app HotelTonight, which expanded to Australia earlier this year, has announced it will retrench 37 employees, or 20% of its workforce.
Founder Sam Shank said HotelTonight is now a more “streamlined and focussed company” better equipped “to accomplish our mission to help people live a more spontaneous life.”
He claimed that despite the retrenchments the business is “doing very well”, doubling booking volumes this year and on track to be profitable in 2016.
His statement follows:
“Today my leadership team and I made a decision to reduce our staff by 20% – 37 people.
“Decisions like this one are never easy, but they are necessary.
“At a startup especially, it’s critical that we have the right people in the right roles in order to stay on track, and hit our growth and revenue targets.
“But this is also a decision that affects people’s lives, and we’re painfully aware of that.
“Compounding the difficulty of this decision is that we’ve built an amazing company culture here.
“We like each other and we spend time together, which made today’s move especially difficult.
“The people who left today made amazing contributions to our success, and we’ll miss them.
“We’ve made plans to ensure they have as easy a transition as possible, including a generous exit package that will pay them through the end of the year.
“This decision was hard, but it was also necessary: HotelTonight is now a more streamlined and focused company.
“We’re well-equipped to accomplish our mission to help people live a more spontaneous life.
“The business is doing very well: We grew over 100% in booking volume this year.
“Word of mouth drives the majority of this growth, which tells me we’re achieving our goal to give people a fantastic experience.
“We’re on track to reach profitability next year. We’ll continue innovating and providing value to our customers and hotel partners.
“Today’s decision was about making the best choice for the company in the long term.
“This agonizing decision is also the right decision. “