Economy

Booking waives government support, does not rule out layoffs

That let the company know after reports of the Financieele Dagblad (FD). Booking does not charge the government for money, but instead looks for long-term solutions to compensate for the collapsed demand for travel.

According to the company, there are no concrete plans for a reorganization, but layoffs are not excluded.

Consequences are great

The financial consequences of the corona measures are significant in the travel industry: on average, entrepreneurs lost 50 percent of their income due to the crisis.

Booking is also hit hard. The company therefore applied for compensation for the wage costs of about five thousand employees under the Emergency Measure Employment Bridging (NOW).

Cabinet offers extra support

Booking was not alone: ​​114,000 companies have already made use of this scheme. The cabinet expanded the package of support measures and the NOW on Wednesday billions from.

Booking refrains from further aid after fierce criticism of the first aid. The US-listed company is entitled to NOW, but also repurchased $ 8 billion in treasury shares last year. In 2019, the company posted net profit of $ 4.9 billion on revenue of $ 15 billion. That is a huge profit margin and that bumps many people.

No dividend

Under the renewed NOW scheme, the fine will lapse if people are fired, but other conditions will apply.

For example, companies are not allowed to pay dividends this year, pay bonuses to board members or buy back their own shares.

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