Expedia is cutting 1,500 jobs as travel demand slows
By Jordan Valinsky, CNN
New York (CNN) — Expedia, the online travel agency, is eliminating about 1,500 employees as part of an “organizational and technological transformation.”
The cuts, which amount to nearly 9% of its 17,100-strong global workforce, come amid slowing travel demand following a post-pandemic boom and a broader shakeup at the company, including a new CEO.
“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,” a company spokesperson said in a statement to CNN.
Expedia (EXPE) said in a regulatory filing that the cuts will result in an $80 million to $100 million charge to its bottom line because of severance and compensation benefits costs. Over time, Expedia has acquired several online traveling booking platforms including Hotels.com, Vrbo, Orbitz, Hotwire.com and Travelocity.
Specific details of where the layoffs will occur wasn’t revealed. An Expedia spokesperson said that the changes “will result in the elimination of some roles” that “allows the company to invest in core strategic areas for growth.”
Expedia had previously announced that CEO Peter Kern was departing his role. Ariane Gorin, who is president of Expedia for Business unit, will take over the position in May when Kern’s contract ends.
The leadership change and job cuts come after the company posted a profit that came in below analysts’ expectations and said its revenue will moderate this year as prices for flight tickets decline. The grounding of Boeing’s 737 Max 9 fleet also dented bookings.
The-CNN-Wire
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