Michelle ThompsonExpedia, the online travel agency, is streamlining its operations through an “organizational and technological transformation,” resulting in the elimination of approximately 1,500 positions. This reduction represents nearly 9% of its global workforce of 17,100 employees. The move comes amidst a slowdown in travel demand following a post-pandemic surge and broader changes within the company, including the appointment of a new CEO.
A spokesperson for Expedia stated to CNN that the company is reassessing resource allocation to prioritize critical initiatives, following the completion of significant technical milestones in its transformation. Expedia anticipates an $80 million to $100 million charge to its finances due to severance and compensation benefits associated with the layoffs, as outlined in a regulatory filing. Over time, Expedia has acquired various online travel booking platforms such as Hotels.com, Vrbo, Orbitz, Hotwire.com, and Travelocity.
While specific details regarding the affected roles were not disclosed, an Expedia spokesperson mentioned that the restructuring will involve the elimination of certain positions to enable investment in key strategic growth areas.
Expedia had previously announced the departure of CEO Peter Kern, with Ariane Gorin, President of Expedia for Business unit, set to assume the position in May upon Kern’s contract expiration.
These changes in leadership and workforce reduction follow a period in which Expedia reported profits below analysts’ expectations and projected a moderation in revenue for the year, attributed in part to declining flight ticket prices and the impact of Boeing’s 737 Max 9 fleet grounding on bookings.
