Booking.com does not use support; ‘layoffs coming’
Booking.com will not use the second support package from the Dutch government. The company is currently still receiving subsidies for personnel who work in the Netherlands through the NOW scheme. There was a lot of criticism, because the company made a profit for years and used the money to, among other things, boost its own share price.
The current arrangement expires May 31. The new arrangement was announced this week, effective June 1, but the company is not making use of it. “We must now focus on long-term solutions,” the company wrote in a statement. “Short-term adjustments are not enough to ensure that our company has the size and structure to fit the new reality of significantly lower travel demand.”
About 5,000 people work for the company in the Netherlands. Presumption is likely to take place on a dismissal round. Earlier, Expedia, Uber and Airbnb cut thousands of jobs. In the last two, a quarter of the staff lose their jobs.
Take their thunder
According to employer foreman Hans de Boer of VNO-NCW, people will probably also go out. “That NOW scheme is intended to keep jobs at companies. If companies know that I will never succeed, then they should not use that scheme either,” says De Boer in the Spraakmakers program on NPO Radio 1.
“If they had extended the NOW scheme and had thrown out a lot of people, the trade union movement would have said: you see, that is wrong. Booking is now going to adapt, maybe shed pieces and the NOW is not part of that.”
He thinks that because of the image, the company refrains from support. “They have rightly been thundered and now they say, we will not let that happen again.”
Booking.com staff were advised this morning. There is consultation with the works council about a social plan. The US parent company lost $ 699 million in the first quarter of this year. The number of bookings fell drastically due to the corona crisis.
In 2019, a further 4.9 billion dollars were made.