HotelTonight CEO Sam Shank (pictured above) said the hotel booking startup laid off 37 employees today, 20 percent of its total workforce.
Shank described the cuts as “a strategic movement that will enable us to reach our growth and revenue targets” and said they will result in “a more streamlined and focused company.” At the same time, he was quick to add, “This was difficult. It affects people’s lives. We’re very painfully aware of that.”
He declined to offer more details about which areas of the company were affected, but he said this should not change HotelTonight’s overall direction or the experience of customers and hotel partners. Shank also said that HotelTonight is on track to double bookings this year compared to 2014, that it will become profitable next year and that it will continue hiring.
As the name implies, HotelTonight started out in 2010 as a mobile-focused, same-day hotel reservation app before adding seven-day booking options last year. It raised more than $80 million in venture funding. The most recent round was a $45 million Series D in 2013.
Shank sent me an emailed statement echoing the points he made during our interview:
