Sabre Corp. is temporarily cutting pay and stopping 401(k) contributions as the travel industry grapples with the fallout of the coronavirus, a person familiar with the matter said.
The majority of U.S. employees at the large travel technology company are getting base pay reductions of less than 20 percent, while more senior people, depending on their levels, are receiving that percentage decrease or more, said the person, who asked not to be identified. Hourly employees are not affected by this move that’s slated to be in effect until the end of June, the person said.
Sabre (Nasdaq: SABR) also has temporarily suspended 401(k) matches, the person said.
Sabre, which is based in Southlake, is on the hunt for ways to lower costs and weather a difficult time as airline customers make deep cuts amid sagging demand and government-imposed reductions over concerns related to the coronavirus. The efforts are to help mitigate the long-term impact of COVID-19 and avoid furloughs or potentially permanent employee reductions, the person said.
On Tuesday, the company said in a public filing it would be nixing buybacks and dividends after a payment later this month.