Expedia to Eliminate 1,500 Jobs as Travel Growth Moderates
(Bloomberg) -- Expedia Group Inc. is eliminating about 9% of its workforce after announcing a leadership transition earlier this month while the online travel company attempts to revive growth and regain market share.
Most Read from Bloomberg
Fed’s Preferred Inflation Metric Increases by Most in a Year
Trump Warns of Big Losses From Asset Sales During Property Slump
Stocks End Month at New Highs After Inflation Data: Markets Wrap
How Much Wealth You Need to Join the Richest 1% Around the World
Apple to Wind Down Electric Car Effort After Decadelong Odyssey
The Seattle-based firm will cut about 1,500 jobs across the globe so it can “invest in core strategic areas for growth,” a company spokesperson said in an email. “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 added.
Some of affected employees began receiving communications Monday about the job reductions, according to a regulatory filing. The company employed 17,100 people in more than 50 countries as of the end of 2023, with about half working in technology roles, according to its latest annual report.
Earlier this month, Expedia reported disappointing holiday results and issued a weaker-than-expected outlook for the current quarter. It also announced that Ariane Gorin, the leader of the fast-growing enterprise division, will be take over as chief executive officer on May 13, succeeding Peter Kern, who has held the post since 2020.
The company and its online travel peers such as Airbnb Inc. and Booking Holdings are contending with moderating travel growth as pent-up demand from the post-pandemic period last year appears to be running out of steam.
Expedia is prioritizing boosting sales this year after spending the past two years focusing on technical upgrades and a long-awaited revamp of its loyalty program. While its consumer business has slowed to single-digit revenue growth in the past two quarters, Expedia’s enterprise division, which sells advertising and travel technology to corporate clients and powers travel booking websites for major brands like Walmart Inc. and American Express Co., has been contributing double-digit gains to the business.
Most Read from Bloomberg Businessweek
China’s Piano Dreams Are Fading for a Cash-Strapped Middle Class
Elon Musk’s Vegas Tunnel Project Has Been Racking Up Safety Violations
Hollywood Is Banking on Dune: Part Two to Revive the Blockbuster Experience
©2024 Bloomberg L.P.
