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Expedia to cut 9% of global workforce in latest restructuring

February 27, 2024
in News
Expedia to cut 9% of global workforce in latest restructuring
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Expedia company headquarters in Bellevue, Washington, near Seattle, where it was announced Monday that the online travel platform will cut 9% of its workforce, or 1,500 employees, amid a restructuring to

Expedia company headquarters in Bellevue, Washington, near Seattle, where it was announced Monday that the online travel platform will cut 9% of its workforce, or 1,500 employees, amid a restructuring to “invest in core strategic areas.” File photo by Dan Levine/EPA

Feb. 27 (UPI) — Expedia announced Monday it will cut its global workforce by 9%, amid a restructuring of the online travel platform, which is expected to impact 1,500 jobs by the end of the year.

Expedia’s outgoing chief executive officer Peter Kern told employees in a memo that the Seattle-based company’s product and technology teams will see “the deepest cuts.”

“With so much technical achievement over the last 12 months and so much tech debt behind us, we now are obliged to take a close look at roles, skills, teams and locations to ensure that our resources are focused in the right areas,” Kern said.

“While this review will result in us eliminating some roles, it will also allow us to continue to invest in core strategic areas,” Kern added.

Expedia Group, which includes brands Vrbo, Orbitz, Hotwire, Hotels.com and Trivago, is expected to incur pre-tax charges of $80 million to $100 million related to the job cuts, according to a new regulatory filing.

Since COVID-19 travel restrictions hit Expedia hard in 2020, the company rebounded last year to a record annual revenue of $12.8 billion and profits of $797 million.

While Monday’s memo said those impacted by the layoffs will be notified within the next week, it did not say where the job cuts would occur. In 2019, the company employed more than 25,000 employees around the world before a series of smaller cutbacks. As of December, Expedia had 17,100 employees in more than 50 countries. In addition to Seattle, Expedia has offices in Chicago; Austin, Texas; and Springfield, Mo., as well as international offices in London, Prague, Madrid, Singapore, Tokyo, Sydney and Gurgaon, India.

Earlier this month, Expedia announced Kern would leave his position after four years as chief executive. Ariane Gorin, who served as president of Expedia for Business, will take over as Expedia’s new CEO in May. Kern will remain vice chairman and will stay on the board.

“I know my message may make some of you feel anxious, so I wanted you to hear this news directly from me,” Kern told workers Monday.

“We are extremely grateful for every Expedian’s contributions, and I know we wouldn’t be where we are today without the contributions of every member of our team,” Kern wrote.

“While the needs of a company may evolve, this does not diminish the contributions you have made to our success now and in the future.”

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Copyright for syndicated content belongs to the linked Source : United Press International – https://www.upi.com/Top_News/US/2024/02/27/seattle-expedia-global-job-cuts/9591709007487/

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