Although online travel company YTB proclaimed their innocence and defended themselves against accusations of fraud, it seems all is not well over at YTB headquarters. Apparently the lawsuits have begun to affect the company in a very short period of time. YTB International Inc. has reportedly terminated 25 people from its corporate headquarters this past Wednesday.
One employee who was laid off said that he and over two dozen others were told their positions were being terminated due to the tough economic situation in the United States. They were told that the management “regrets this necessary decision.”
The laid off man who asked to remain anonymous, said that ever since the California Attorney General filed a suits against YTB the company has continued to tell employees that all if fine, but that doesn’t seem to be the case.
In a recent statement, YTB CEO Scott Tomer defended the company saying, “As a matter of policy, we do not comment on pending litigation. However, we can tell you that YTB believes the allegations we’ve heard are without merit, and we will vigorously defend ourselves
YTB Employs between 300 and 350 people at its Wood River Illinois headquarters. Currently the company is spending $25 million to expand the facility. While YTB has grown significantly over the last few years, it seems that this case is hitting them hard.
A local Wood River Paper attempted to contact the company, but to no avail as the company would not respond to any inquiries regard layoffs or the current financial situation at the company.
YTB is pretty adamant about their innocence and feels justified telling their employees that all is “OK” with the company. However, for a company that is allegedly financial sound and feels secure with their business model, it seems odd that they would “lie” to their employees about the company’s stability, only to turn around and lay their loyal employees off. Instead of spending a ridiculous amount of money expanding an organization that is under attack, they should focus on treating their employees better and defending themselves against fraud allegations.
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