Expedia Group Inc. is cutting about 1,500 jobs worldwide, which is around 9 per cent of its total workforce. This decision comes after the company announced changes in its leadership earlier this month.
“The business continues to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritized,” an Expedia Group spokesperson told news agency Reuters.
Some Expedia employees have already been informed about the job cuts, reported Bloomberg News.
Expedia, headquartered in Seattle, employed about 17,100 people across more than 50 countries by the end of 2023, with roughly half of them working in technology-related roles.
The company recently reported disappointing holiday sales and gave a weaker outlook for the current quarter. In the fourth quarter, Expedia’s gross bookings were $21.7 billion, falling short of analysts’ expectations of $22 billion.
Expedia aims to increase its sales this year after focusing on technical improvements for the past two years.
While its consumer business has seen slower growth in revenue, the enterprise division, which sells advertising and travel technology to corporate clients and powers travel booking websites for major brands, has been performing well.
Ariane Gorin, the leader of the enterprise division, will take over as CEO on May 13 as part of the leadership change.
Expedia expects the restructuring to cost between $80 million and $100 million in pre-tax charges and cash expenditures.
It may be noted that travel companies, including Expedia, Airbnb Inc., and Booking Holdings, are expecting slower growth in 2024 compared to the post-pandemic period last year.
Source Agencies
