Expedia Announces Reduction Of 1,500 Jobs Amidst Moderating Travel Demand

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New Delhi: Expedia, a prominent online travel platform, announced on Monday its decision to reduce its workforce by approximately 1,500 positions worldwide, constituting roughly 9% of its total employee base. This move comes as part of the company's strategic overhaul aimed at "organizational and technological transformation".

The restructuring follows Expedia's recent caution that revenue would moderate in 2024 due to declining air ticket prices. CEO Peter Kern's departure was announced earlier this month. ()

"The business continues to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritized," an Expedia Group spokesperson said. This statement from an Expedia Group spokesperson suggests that the company is constantly reviewing its resource distribution to ensure that vital tasks receive the highest priority. ()

Travel companies are adjusting their forecasts for 2024, indicating an anticipation of slower growth in demand compared to previous expectations. Last week, Booking Holdings predicted decreased growth in bookings for both the first quarter and the entire year, attributing it to the normalization of U.S. travel demand.

According to Expedia, restructuring-related costs, including pre-tax charges and cash expenditures are projected to range between $80 million and $100 million. In aftermarket trading, the company's shares experienced a slight increase. (With Inputs From Reuters)