Orbitz Worldwide names CEO, plans cost cuts
CHICAGO (Reuters) - Online travel agency Orbitz Worldwide on Wednesday said it named Barney Harford as president and chief executive and added that it would cut costs an additional $20 million to $25 million a year.
Harford, 37, who has worked in the Internet travel business at rival Expedia Inc, replaces Steve Barnhart as Orbitz CEO. Barnhart, 47, resigned to "pursue other interests," the company said.
Orbitz, which posted a third-quarter loss in November, has seen its stock price fall more than 70 percent since the company went public in July 2007. The industry has suffered since last year amid economic weakness and airline capacity cuts.
Orbitz did not immediately specify the latest cost-cutting measures. The steps would be in addition to a $20 million-a-year savings target announced in November. The company said then that it cut 10 percent of its work force, or about 100 jobs.
Harford previously held a variety of roles at Expedia, the largest U.S. online travel company, from 1999 to 2006. From 2004 to 2006 he was president of Expedia Asia Pacific.
For the last two years, Harford has held board and advisory positions at travel Internet companies and other businesses, including LiquidPlanner and GlobalEnglish.
Barnhart, who became CEO of Orbitz in 2007 when it went public, will remain there through early April during the transition.
Orbitz shares closed at $4.12 on Tuesday on the New York Stock Exchange.
(Reporting by Kyle Peterson, editing by Maureen Bavdek)
