Online travel platform Expedia announced on Monday its decision to reduce its global workforce by approximately 1,500 jobs, constituting around 9% of its total employees.
This move is part of Expedia’s broader “organizational and technological transformation” initiative.
The restructuring follows a recent warning from Expedia about the anticipated moderation in revenue for 2024, citing a decline in air ticket prices. Additionally, CEO Peter Kern’s departure was disclosed earlier this month.
In response to the changes, an Expedia Group spokesperson stated, “The business continues to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritized.”
The travel industry, including major players like Expedia, is adjusting expectations for the year 2024, reflecting a cautious outlook on the pace of demand growth.
Booking Holdings also reported slower growth in bookings for the first quarter and the full year, signaling a normalization of U.S. travel demand.
Expedia estimates the total pre-tax charges and cash expenditures related to the restructuring to fall within the range of $80 million to $100 million. As the company undergoes these strategic changes, it underscores the broader challenges and adjustments faced by the travel sector in response to evolving market conditions.
