Orbitz cost-cutting to come from third party technology deals

Cost-cutting at Orbitz to the value of up to $25 million is likely to come from cutting back on outsourced technology, outgoing chief executive Steve Barnhart has said.

Barnhart, speaking during a conference call following the announcement today, said he would remain with the company for a few months in an advisory role.

The largest focus of the $20 to $25 million in additional annual cost trims will come in outsourced technology resources, where an unspecified number of relationships are being adjusted.

Officials declined to name specific third-party vendors that will be the subject of the trims.

Orbtiz Worldwide chairman Jeff Clarke said a lot of the $40 to $45 million in cost reductions announced since November would have been implemented independent of the economic downturn because the company has made investments that enable it to operate efficiently with fewer internal and external resources.

Barnhart is understood to have resigned yesterday (Tuesday 6 January).

The news comes just 24 hours after Orbitz announced the completion of the Ebookers technology platform migration across 13 markets in Europe.

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