Inspirato cuts 12 per cent of workforce to “streamline operations”
US: Luxury travel subscription brand Inspirato has announced a plan to streamline its operations, including laying off 12 per cent of its current staff with immediate effect.
As a result, Inspirato will continue operating with a headcount of 800 employees, although that figure is still up by more than 300 staff members compared to December 2020.
While the company did not divulge specific reasons for needing to streamline its operations to such an extent, Inspirato recently reported a net loss of $7.3 million when holding its most recent quarterly earnings call in December. At the time, it said that the loss had been attributed to rising operating expenses and slower than anticipated signups to Inspirato’s subscription-based service Pass, which is designed to offer subscribers more flexibility, added value and over one million trip options in more than 100 destinations worldwide, and debuted in 2019.
Brent Handler, co-founder and CEO of Inspirato, said: “We took this step to help reduce costs as we manage Inspirato responsibly in the face of ongoing macroeconomic uncertainty. While we regret saying goodbye to this talented group of colleagues, we believe that the long-term opportunity for Inspirato remains strong.
“We believe this reduction will help us achieve our goal of adjusted EBITDA breakeven in 2023 while continuing to deliver the service and certainty that our Inspirato subscribers expect whenever they travel with us,” he added.
In February last year, the private travel club closed its business combination with special purpose acquisition company [SPAC] Thayer Ventures Acquisition Corporation and began trading on the Nasdaq Stock Market.
In the process, Inspirato secured more than $100 million in net proceeds from the transaction, and the combined company began trading with an initial valuation of approximately $1.1 billion. At the time, the firm said that it would focus its attention on enhancing its proprietary subscription technology, guest experience and personalisation, as well as expanding its portfolio of 425 homes under management and roster of 18,000+ members.
Inspirato manages a portfolio of hand-selected vacation options, included branded, controlled luxury vacation homes available exclusively to subscribers and guests, accommodations at five-star hotel and resort partners, and custom travel experiences.
The company added that it would provide further details when it reports its financial results for the fourth quarter and full year 2022 later this year.