TripActions lays off hundreds (TechCrunch, March 25, 2020)

Summary

A TechCrunch article by Natasha Lomas saying Palo Alto-based corporate travel company TripActions confirmed laying off hundreds of staff amid the COVID-19 travel freeze. A Blind post and a Business Insider report put the number at 350, and the Wall Street Journal said it was between one-quarter and one-fifth of staff, while a company spokesman said “less than 300,” including 25 people offered other roles. The article says the spokesman disputed the post's account of severance and medical cover, describing two months of company-paid COBRA coverage and a minimum of 3 weeks salary for U.S. employees, with April 1, 2020 as their last day. It notes TripActions had secured a $500 million credit facility the month before.

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TripActions lays off hundreds amid COVID-19 travel freeze

The coronavirus demand crunch has taken another bite: Palo Alto-based corporate travel-focused unicorn TripActions has confirmed laying off hundreds of staff.

Per this post on Blind — written by someone with a verified TripActions email address — the company laid off 350 people. Business Insider reported the same figure yesterday, and the Wall Street Journal said the layoffs amount to between one-quarter to one-fifth of the startup’s total staff, citing a person familiar with the situation.

Update: A spokesman for TripActions told us the number of impacted employees impacted is “less than 300” — although he qualified the remark by saying the figure includes 25 people who were offered other roles within the company.

In an earlier email to Crunchbase News TripActions confirmed axing jobs in response to the COVID-19 global health crisis — saying it had “cut back on all non-essential spend.” It did not confirm exactly how many employees it had fired at that point.

“[We] made the very difficult decision to reduce our global workforce in line with the current climate,” TripActions wrote in the statement. “We look forward to when the strength of the global economy and business travel inevitably return and we can hire back our colleagues to rejoin us in our mission to make business travel effortless for our customers and users.”

“This global health crisis is unlike anything we’ve ever seen in our lifetimes, and our hearts go out to everyone impacted around the world, including our own customers, partners, suppliers and employees,” it added. “The coronavirus has had [a] wide-reaching effect on the global economy. Every business has been impacted including TripActions. While we were fortunate to have recently raised funding and secured debt financing, we are taking appropriate steps in our business to ensure we are here for our customers and their travelers long into the future.”

Per the post on Blind, TripActions is providing one week of severance to sacked staff and medical cover until end of month. “With [the coronavirus pandemic] going on you think they would do better,” the OP wrote. The layoffs were made by Zoom call, they also said.

However TripActions’ spokesman disputed the details about severance and medical cover, saying it is offering severance packages for U.S. employees that include two months of company-paid COBRA health insurance coverage, extending health benefits through the end of June, along with a minimum of 3 weeks salary.

He added that U.S. employees who were given notice yesterday were told their last day would be April 1, 2020 — meaning their health benefits continue through the end of April.

Travel startups are facing an unprecedented nuclear winter as demand has fallen off a cliff globally — with little prospect of a substantial change to the freeze on most business travel in the coming months as rates of COVID-19 infections continue to grow exponentially outside China.

However, TripActions is one of the highest valued and best financed of such startups, securing a $500 million credit facility for a new corporate product only last month . At the time, Crunchbase recorded $480 million in tracked equity funding for the company, including a $250M Series D TripActions raised in June from investors including a16z, Group 11, Lightspeed and Zeev Ventures.

Before the layoffs, the company had already paused all hiring, per one former technical sourcer for the company writing on LinkedIn .

This post was updated with additional comment from TripActions

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Topics

Business Travel , coronavirus , COVID-19 , Enterprise , layoff , Layoffs , lightspeed , palo alto , Startups , Transportation , travel startups , tripactions , Zeev Ventures

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Natasha Lomas

Senior Reporter

Natasha was a senior reporter for TechCrunch, from September 2012 to April 2025, based in Europe. She joined TC after a stint reviewing smartphones for CNET UK and, prior to that, more than five years covering business technology for silicon.com (now folded into TechRepublic), where she focused on mobile and wireless, telecoms & networking, and IT skills issues. She has also freelanced for organisations including The Guardian and the BBC. Natasha holds a First Class degree in English from Cambridge University, and an MA in journalism from Goldsmiths College, University of London.

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