as reported by Cynthia Ellis of The Telegraph; YTB Travel International Inc. has began to lay-off some of it's employees from it's corporate
headquarters as of Wednesday August 27, 2008. However, the following story can
give us better insight as to "WHY" these alarming steps were taken:
By CYNTHIA M. ELLIS
The Telegraph
WOOD RIVER - YTB International Inc. reportedly terminated the employment of 25 people from its corporate headquarters on Wednesday.
A laid-off employee, who asked to remain anonymous, said that he and two dozen others were told their positions were being eliminated due to the "current economic environment in the United States," and that the company's management "regret this necessary decision."
The man said company officials knew Tuesday that positions would be eliminated, because they scheduled meetings with the employees Wednesday to inform them about the situation.
"I was told by my manager there would be a meeting, and I had no idea what it was about," he said. "I didn't know if I had done something wrong. I was stressing all night."
The man said that ever since the California Attorney General's Office filed a lawsuit against YTB Travel International Inc. in early August that claimed the company was operating a "gigantic pyramid scheme," company officials have been telling employees that "everything is fine."
"I don't think it's fine," he said.
Legal action was taken against YourTravelBiz.com, a subsidiary of YTB International Inc., for allegedly recruiting tens of thousands of people with deceptive claims that they could earn huge sums of money through its online travel agencies.
So far, the lawsuit is the toughest one filed against the company since it started operations seven years ago. YTB Travel International Inc. runs Web sites for referring travel agents, online agencies that sell flights, cruises and vacation packages and earn a commission.
Since the filing of the California suit, a class action lawsuit has been filed in federal court in East St. Louis and a third in Madison County Circuit Court. A judge has scheduled a hearing for Sept. 2 in the circuit court case filed in Edwardsville by Terry and Teresa Braswell, in which the couple claim thatYTB Travel International Inc. Chairman J. Lloyd "Coach" Tomer "repudiated" a contract with the couple that called for them to receive about $10,000 per month.
The company has defended itself against the legal actions.
"As a matter of policy, we do not comment on pending litigation. However, we can tell you that YTB Travel International Inc. believes the allegations we've heard are without merit, and we will vigorously defend ourselves," YTB Travel International Inc. Chief Executive Officer Scott Tomer said recently in a prepared statement.
Tomer said the company is proud of its business model and how the operations are conducted in an ethical and transparent way by management. Last month, the company announced that it was contemplating the replacement of its referring travel agent business model with a franchise operating system, to start in 2009. The model, if adopted, would be similar to other franchise businesses; however, details about the plan still are in the works.
YTB Travel International Inc. officials did not respond to an e-mail sent by The Telegraph, asking questions about its layoffs or whether any legal actions have had a financial impact on the company.
During the past several years, YTB Travel International Inc. has grown significantly; last year, it was ranked 26th in a survey conducted by Travel Weekly magazine, selling $414.5 million. Reports show that nearly three-quarters of its revenue came from selling new agencies rather than from actual travel sales.
YTB Travel International Inc. employs between 300 and 350 people at its headquarters at 1901 E. Edwardsville Road, where it is spending $25 million to expand the facility it purchased more than two years ago.
Wood River Mayor Fred Ufert said he hates to see employees lose their jobs. He said the layoffs would hurt the city economically, as well.
"Some of the employees live in the city," Ufert said. "It's a bad thing for everyone. We can only hope they will get through it."
The former YTB Travel International employee said the situation is upsetting, but he has come to the conclusion that he doesn't need to be working for a company that cannot be honest with its employees. He said it is likely that more positions will be terminated.
"We could clearly see something was going but were assured everything was OK," he said. "Does it seem OK if they are letting people go?"
In closing, YTB Travel International Inc. doesn't appear to be as recession proof as it has everyone thinking I mean to make such a bold step as this just days before YTB Travel International is to meet with a circuit judge to answer the allegations pending from The California suit, The class action lawsuit that has been filed in federal court in East St. Louis and a third in Madison County Circuit Court is a sure sign that everything isn't at all what YTB Travel International Inc.Chief Executive Officer Scott Tomer and others are confessing them to be, it's funny that I choose the word "CONFESSING"
maybe it time that YTB Travel International Inc. began to do just that "CONFESS" it's wrong doing and set their captives FREE!!!!!!!
For More Information Contact:
Daryl D. Alex
Regional Executive
TraVerus Travel and TeleVerus Cell Phones
1.800.781.3254
1.877.744.3431
225.590.7700
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