The online travel company, which also owns brands such as VRBO and Hotels.com, said that it was committed to “restructuring actions” that resulted in the layoffs.
In a significant move within the online travel industry, Expedia Group has announced a reduction of approximately 1,500 jobs globally, which accounts for about 9% of its total workforce. This decision is part of the company’s broader initiative towards an organizational and technological transformation aimed at aligning its resources more effectively with its strategic priorities.
Expedia’s CEO Peter Kern
This development follows Expedia’s earlier cautionary statement this month, forecasting a moderation in revenue growth for 2024, attributed to declining air ticket prices. Additionally, the company has confirmed the departure of CEO Peter Kern, signaling a pivotal period of transition and reevaluation of its operational strategies.
An Expedia Group spokesperson emphasized the importance of resource allocation in supporting the company’s most critical projects. “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,” the spokesperson remarked.
The announcement of job reductions, which began notification processes for some employees on Monday, comes in the wake of Expedia’s latest annual report, highlighting a global workforce of 17,100 individuals across more than 50 countries at the end of 2023. Notably, around half of these employees are engaged in technology-related roles, underscoring the company’s investment in technical innovation.
Expedia’s strategic realignment includes a focus on boosting sales in the coming year, following a concentrated effort on technical enhancements and a much-anticipated revamp of its loyalty program over the past two years. Despite experiencing a slowdown in consumer business growth to single-digit revenue increases in recent quarters, Expedia’s enterprise division has seen robust double-digit growth. This division specializes in advertising and travel technology services for corporate clients, in addition to managing travel booking platforms for major brands such as Walmart Inc. and American Express Co.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
