Expedia has conducted an operational review that has resulted in a plan to cut 1,500 jobs over the course of 2024. The company aims to streamline its operations and focus on core strategic areas. The deepest cuts are expected to be in Expedia’s product and technology teams, where the company may seek to reallocate resources and invest in areas crucial to its future growth.
The reduction of 1,500 jobs represents a 9% decrease in Expedia’s global workforce of 17,100 employees. The affected employees will be informed about the changes in the coming week, according to a memo from outgoing CEO Peter Kern. However, it remains unclear whether all 1,500 employees will receive notifications at once or if the impact will primarily be felt by employees based in Seattle.
Expedia’s decision to cut jobs is part of its broader strategy to invest core strategic areas. By streamlining operations and reallocating resources, the company aims to enhance its competitiveness and adapt to the changing dynamics of the travel industry. While the specific details of the core strategic areas are not mentioned, Expedia is likely seeking to strengthen its market position and drive growth in key segments.
The COVID-19 pandemic has heavily impacted the travel industry, leading Expedia to take on significant debt amounting to $3.2 billion. As the company looks towards recovery and growth, it recognizes the need to make strategic adjustments to its workforce. Expedia’s business-to-business division, led by Cyril Gorin, has emerged as a significant source of growth. In 2023, this division witnessed a 33% increase in revenues compared to the previous year, showcasing its potential for further expansion and revenue generation.
Expedia has not provided specific details on the support it will offer to the affected employees. However, as the company undergoes these changes, it is essential for Expedia to prioritize employee welfare and provide resources for transitioning or reemployment opportunities. The new CEO will play a crucial role in shaping the future direction of the company and ensuring a smooth transition during this challenging time.