Sabre on Tuesday said the company will cut its global workforce by
approximately 9% "to streamline and focus the business."
According to documents on the company's website, Sabre has
nearly 10,000 employees in 65 countries, meaning the cuts will amount to about
In its second-quarter earnings release, Sabre said the
initiative will reorganize functions of the business, reduce management and
lower costs "to enable a more nimble, faster moving and focused
Sabre expects the cuts will result in about $110 million of
annual savings. On Sabre's second-quarter earnings call, CEO Sean Menke said
the total expected savings breaks down to a $60 million reduction in cost of
revenue and a $50 million reduction in selling, general and administrative
The initiative will enable Sabre to meet its financial
targets for 2017, he said, and to account for slower growth projected in its
Airline Solutions business in 2018.
In the second quarter, Sabre reported a 6.6% decrease in
adjusted net income, to $97 million.
Total revenue was up 6.6%, to $900.7 million. Airline Solutions
and Hospitality Solutions revenue was up 7.8%, while Travel Network revenue was