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Expedia Group Announces Major Job Cuts Amidst Slowing Travel Growth

Published February 27, 2024
3 months ago

In a significant restructuring move, Expedia Group has revealed plans to eliminate roughly 9% of its global workforce, translating to about 1,500 job positions. This decision comes close on the heels of an executive turnover, as the online travel behemoth works toward revitalising growth and retrieving its market share.

The Seattle-headquartered company expressed that this move is directed toward allowing further investment in critical growth areas. A spokesperson from Expedia commented via 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.”

Affected employees have started receiving notifications about the job cuts as indicated in a regulatory filing. At the close of 2023, Expedia's workforce stretched over more than 50 countries with 17,100 employees, nearly half of them occupying technology-centric roles, as revealed in its latest annual report.

This workforce reduction unfolds against a backdrop of disappointing holiday revenues and an outlook for the current quarter that fell below analysts' expectations. With the travel industry facing a gradual slowdown in growth following a substantial post-pandemic demand surge, Expedia appears to be readjusting its sails.

Moreover, this month ushered in a leadership transition, with Ariane Gorin, the head of the burgeoning enterprise division, set to assume the role of CEO on May 13, succeeding Peter Kern. The enterprise division, a powerhouse for sales and advertising technology made available to corporate clients, including marquee names such as Walmart and American Express, has continued to deliver double-digit growth for the company.

Meanwhile, Expedia's consumer division has seen a more tepid single-digit revenue escalation in recent quarters. Recognizing these shifts, Expedia Group is now prioritizing sales growth after a period of concentrated focus on technical enhancements and a long-awaited overhaul of its loyalty scheme. This move is part of a larger industry trend, with competitive entities like Airbnb and Booking Holdings similarly facing the realities of a stabilizing travel landscape.

As Expedia positions itself for the future, the job cuts are an unmistakable sign of an industry grappling to find its balance in the uncertain terrain of the post-pandemic world. The firm's strategy to refine its focus and resource distribution signals a renewed effort to adapt and thrive amidst these evolving market conditions.

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