Tripadvisor is reducing its workforce in its legacy hotel metasearch business as part of a global restructuring plan. The move comes as outgoing Chief Executive Officer Matt Goldberg admitted that the company’s strategy to merge its Viator and Tripadvisor experiences teams has not delivered the results leadership anticipated.
Goldberg, whose departure was announced on Thursday, stated that the consolidation of the teams in experiences, Tripadvisor’s most important segment, has not proved out as expected. This assessment is supported by recent financial data showing a decline in both revenue and profitability for the segment.
Financial Performance and Viator Integration
Experiences revenue fell 3% in the third quarter, while adjusted EBITDA in the segment dropped 27%. Total company revenue decreased by 11% to $436.4 million. The company posted a net loss of $316.9 million, a sharp reversal from the $48.5 million in net income reported a year earlier.
Goldberg attributed the decline in the Tripadvisor channel to high single-digit drops, citing search engine optimization headwinds, weakness in the North America to Europe travel corridor, and execution problems. In contrast, Viator and B2B2C experiences bookings grew in the low teens.
The failure of the Viator integration has forced a reevaluation of how the company approaches its most critical growth segment. Investors and employees alike are watching to see if the restructuring can reverse the recent downward trend in revenue and profitability.
Leadership Changes and Financial Strategy
Alongside Goldberg, Chief Financial Officer Michael Noonan is also leaving the company. Goldberg will remain in his role until February 16, 2027, while Noonan departs on December 31. Kristen Dalton, the Chief Strategy and Operations Officer, will serve as interim CFO.
The restructuring plan involves shifting product engineering and data analytics roles into the experiences division. Tripadvisor expects these changes to generate $40 million in gross annualized savings.
The company also addressed its balance sheet strategy following the sale of TheFork to American Express for $685 million. Tripadvisor stated it will use these proceeds to pay down debt and will continue to investigate strategic alternatives for the business.
Source: Skift
