In response to the Covid-19 coronavirus outbreak, Sabre has announced cost-cutting measures to the tune of $200 million, including temporary compensation reductions for its salaried U.S. workforce and a 25% reduction for president and CEO Sean Menke.
According to tax documents, Menke's base salary as of April 2019 was $975,000.
Sabre did not specify the amount of reductions other employees would see. It will also "work with international employees on a country-by-country basis," the company said in a statement.
Additionally, the cash retainer for members of Sabre's board of directors will be reduced. Its 401(k) match program will be suspended for participating U.S. employees. Globally, the company is offering voluntary unpaid time off, severance and early retirement. The company is also reducing vendor costs, third-party contracting and "other discretionary spending."
"This is an unprecedented time," Menke said in a statement. "The global travel industry is facing challenges beyond what has been experienced before. We believe Sabre is well positioned to navigate this challenging environment. We are fortunate that significant aspects of our cost structure are variable and are taking steps to help align our other costs with the current demand environment.
Sabre also expects a decline in Sabre Travel Network incentive expenses in proportion to the global travel decline Covid-19 is causing, and a reduction in its $250 million technology hosting costs.