Sabre said it is repositioning the business as part of plans to go after new revenue opportunities and bring down costs.
There will be job losses, according to a statement from president and CEO Kurt Ekert, who assumed the CEO role last week.
A 15% reduction in employees is expected to be completed by the end of the second quarter, which Ekert said would better position the company.
The restructuring will cost the company $50 million in 2023 and $20 million in 2023, Sabre said during the company's Q1 earnings call.
The cost-savings measures are part of the company's target of $500 million in free cash flow in 2025 and $900 million in adjusted EBITDA.
Reducing costs and boosting cash flow are just two of Sabre's current priorities. Sustainable growth and driving innovation also are on the list.
In the travel solutions business, developments will include GDS expansion, a global multi-source B2B lodging platform and further work in airline retailing, including New Distribution Capability (NDC).
Sabre also sees opportunity in its payments business following the acquisition of Conferma last summer as well as its partnership with Mastercard to speed up the use of virtual cards for B2B payments.
Growth is also expected to come from the hospitality solutions unit of the company, including its Intelligent Retailing offering.
The company also said it is expecting a $200 million cost reduction annually, including $100 million in the second half of 2023, from "resource realignment."
For the first three months of 2023, Sabre reported revenue of $743 million compared with $585 million the previous year. The growth was driven by increases in air, hotel and other travel bookings, the company said, with year-over-year bookings up 49%.
Sabre's net loss was $103 million compared with a net income of $42 million for Q1 of 2022.
Revenue for the travel solutions business increased 27% to $677 million. Distribution revenue was up 53% to $526 million, and IT solutions revenue declined 21% to $152 million.
Source: Phocuswire