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Expedia Announces Global Job Cuts Amid Travel Slowdown
Expedia announces plans to cut approximately 1,500 jobs globally, representing 9% of its workforce. The restructuring is part of the company's strategy to adapt to moderating travel demand and undergo organizational and technological transformations. Expedia's CEO, Peter Kern, is stepping down as the company warns of revenue moderation in 2024.
Expedia, the popular online travel platform, has revealed plans to cut approximately 1,500 jobs worldwide, which accounts for around 9% of its total workforce. This move comes as part of the company's "organizational and technological transformation" strategy in response to moderating travel demand.
The decision to restructure follows a recent warning from Expedia that its revenue would experience a slowdown in 2024 due to declining air ticket prices. Additionally, CEO Peter Kern has announced his departure from the company.
In a statement, an Expedia Group spokesperson emphasized the need to prioritize essential tasks and evaluate resource allocation accordingly. This move reflects the company's commitment to adapt to changing market conditions and ensure long-term sustainability.
The travel industry as a whole is adjusting its expectations for 2024, indicating a projected slowdown in demand growth this year. Last week, Booking Holdings, another major player in the travel sector, forecasted slower growth in bookings for the first quarter and the full year as travel demand in the United States normalizes.
Expedia estimates that the total pre-tax charges and cash expenditures associated with the restructuring actions will range between $80 million and $100 million. These costs reflect the company's commitment to implementing necessary changes to streamline operations and optimize efficiency.
Despite the news of job cuts, shares of Expedia saw a marginal increase in aftermarket trading. This suggests that investors remain cautiously optimistic about the company's ability to navigate the current challenges and emerge stronger in the long run.
Expedia announces plans to cut approximately 1,500 jobs globally, representing 9% of its workforce.
The restructuring is part of the company's strategy to adapt to moderating travel demand and undergo organizational and technological transformations.
Expedia's CEO, Peter Kern, is stepping down as the company warns of revenue moderation in 2024.
Source: REUTERS