Expedia Group Inc. is implementing workforce reductions of approximately 1,500 positions worldwide, constituting approximately 9 percent of its total workforce, as part of its broader organizational restructuring strategy amid the ongoing global moderation in travel demand.
This decision follows the recent announcement of leadership changes within the company earlier this month and reflects Expedia Group's ongoing assessment of resource allocation to prioritize essential initiatives.
According to a spokesperson from Expedia Group cited by Reuters, the company is continuously evaluating the optimal distribution of resources to ensure the prioritization of critical initiatives.
Bloomberg News reported that certain Expedia employees have already been notified about the impending job cuts.
As of the end of 2023, Expedia, headquartered in Seattle, maintained a workforce of approximately 17,100 individuals spanning more than 50 countries, with a significant portion engaged in technology-related roles.
Expedia recently disclosed underwhelming holiday sales figures and provided a subdued outlook for the current quarter. The company's fourth-quarter gross bookings totaled $21.7 billion, falling short of analysts' projections of $22 billion.
After dedicating the past two years to technical enhancements, Expedia aims to bolster its sales performance this year.
While its consumer-oriented division has experienced a deceleration in revenue growth, the enterprise segment, which focuses on selling advertising and travel technology to corporate clients and supports travel booking platforms for major brands, has demonstrated resilience.
As part of the leadership transition, Ariane Gorin, who leads the enterprise division, is set to assume the role of CEO on May 13.
Expedia anticipates that the restructuring efforts will incur pre-tax charges and cash expenditures ranging between $80 million and $100 million.
It is noteworthy that travel industry players, including Expedia, Airbnb Inc., and Booking Holdings, are anticipating a slowdown in growth for 2024 compared to the surge experienced during the post-pandemic period last year.
