In response to moderating travel demand and a cautious outlook for the year, Expedia, a leading player in the online travel industry, announced plans on Monday to reduce its workforce by approximately 1,500 employees globally. This move accounts for about 9% of the company’s total workforce and is part of a larger strategy focused on organizational and technological overhauls.
The decision comes on the heels of a recent warning from Expedia, anticipating a moderation in revenue for the year 2024. Contributing factors include a decline in air ticket prices and the confirmation of the departure of CEO Peter Kern amidst these developments.
A spokesperson for Expedia Group stated, “The business continues to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritized.”
The broader sentiment within the travel sector hints at a more subdued outlook for 2024, signaling a slower pace of growth compared to previous years. Last week, Booking Holdings also projected a deceleration in first-quarter and full-year growth, citing a normalization of US travel demand.
Expedia estimates that the total pre-tax charges and cash expenditures associated with the restructuring efforts will range between $80 million to $100 million.
Despite the reduction in workforce, shares of Expedia experienced marginal gains in aftermarket trading.
