Title: Expedia Undergoes Organizational and Technological Transformation with the Elimination of 1,500 Employees
Expedia Group, a leading contact travel agency, has announced plans to eliminate approximately 1,500 positions as part of a significant organizational and technological transformation. This represents nearly 9% of the company’s global workforce of 17,100 employees.
Slowing travel demand following a post-pandemic boom and broader company shakeups have contributed to the decision to reduce headcount. In a statement, Expedia’s spokesperson shared with media outlets that “given the recent completion of many significant technical milestones in Expedia Group’s transformation, the business continues to evaluate the appropriate allocation of resources.”
The company disclosed in a regulatory filing that these workforce adjustments will result in a charge of $80 million to $100 million to its bottom line due to severance and compensation benefits costs. Over the years, Expedia has made several acquisitions in the contact travel booking industry, including Hotels.com, Vrbo, Orbitz, Hotwire.com, and Travelocity.
Although specific details regarding the locations of the layoffs have not been disclosed yet, an Expedia spokesperson stated that these changes will enable the company to “invest in core strategic areas for growth.” The company had earlier announced that its CEO, Peter Kern, would be departing his role. Effective May 2023, Ariane Gorin – currently the president of Expedia for Business unit – will take over as CEO.
The leadership change and workforce reductions come after Expedia reported profits that fell short of analysts’ expectations and announced a moderate revenue growth forecast for 2023. The grounding of the Boeing 737 Max 9 fleet further impacted bookings.
Amidst these developments, Expedia aims to streamline its operations and adapt to the evolving market landscape, focusing on strategic growth areas to remain competitive.
