Klook to reduce headcount, forgo co-founders’ salaries to weather Covid-19 crisis

Hong Kong-based travel booking startup Klook said it will streamline its workforce either through furloughs or headcount reduction as it fights for survival amid the Covid-19 pandemic.

Photo credit: Klook

“After very careful and painful consideration, we have decided to take the appropriate and responsible action now to ensure that we can weather this storm and protect the long-term success of our organization,” Ethan Lin, CEO and co-founder of Klook, told Tech in Asia in a statement. “It is a very difficult decision but we have to take the next step of cost-optimization measures.”

The decision will impact around 10% to 20% of the company’s total headcount across most of the functions, according to a report by TTG Asia.

Lin assured that affected employees will continue to receive healthcare coverage and other benefits, such as the company’s Employee Assistance Program.

The chief exec also said that he and his co-founders will not be receiving any salary until the end of the crisis, while the leadership team will be taking voluntary pay cuts.

The company will also implement a temporarily reduced workweek across the organization.

The global travel industry has been severely hit by the Covid-19 crisis: Myanmar-based travel startup Flymya has laid off a third of its headcount this year as bookings dropped, while India-based hotel chain Oyo just placed “a significant number” of its employees on temporary leave or furloughs after it saw its revenue and occupancy dip by as much as 60%.

Founded in 2014, Klook offers a digital platform that lets travelers discover and book tours and experiences. It most recently raised a total of US$425 million in a series D round from SoftBank Vision Fund and Sequoia Capital China, among others, last year.

During its fifth anniversary in September 2019, Klook announced its plans to double its workforce from 1,200 to over 2,500 in more than 30 offices by 2020, in an effort to bolster its international presence in Asia Pacific and Europe.