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Expedia To Cut 1,500 Jobs, or 9% of Its Workforce
February 27, 2024
Travel giant Expedia is cutting 1,500 jobs, or roughly 9% of its workforce, throughout this year as it invests in the company’s growth. The travel giant’s brands include booking service Expedia, vacation rental service Vrbo, and hotel booking services Hotels.com and Trivago.
“Given the recent completion of many significant technical milestones in Expedia Group’s transformation, 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 FOX Business in a statement.
The spokesperson said that as a result, in 2024, the company will review its operations, resulting in workers impacted across the globe. The statement claims the cuts will allow the company to “invest in core strategic areas for growth.”
Paperwork was filed with the United States Securities and Exchange Commission and signed by Julie Whalen, the company’s chief financial officer. It shows the restructuring actions commenced on Feb. 22, 2024.
The paperwork reads that Expedia Group, Inc. is committing to “recalibrate resources” in light of the company’s organizational and technological transformation. These restructuring actions are expected to result in a workforce reduction impacting approximately 1,500 employees.
Expedia to cut about 1,500 jobs globally amid moderating travel demand https://t.co/GsZZSBRgll pic.twitter.com/SoLHW7jwl6
— Reuters (@Reuters) February 26, 2024
According to the paperwork, communication regarding the restructuring began on Feb. 26, 2024. These restructuring actions are expected to cost “$80 million to $100 million, and are predominately employee severance and compensation benefits costs.”
Expedia aims to increase its sales this year after focusing on technical improvements for the past two years. In the fourth quarter, Expedia’s bookings grossed $21.7 billion overall. However, they still fell short of the company’s expectations of $22 billion.
Expedia Group announced on Feb. 8, according to Reuters, that CEO Peter Kern will be stepping down in May. His replacement is Ariane Gorin, currently president of Expedia for Business. However, Kern will remain vice chairman and stay on Expedia’s board.
Expedia is headquartered in Seattle and employed about 17,100 people across more than 50 countries by the end of 2023. Roughly half of the company’s employees worked in technology-related roles.
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