Online travel platform Expedia is the latest company to join the list of technology layoffs. Expedia announced it would cut 1,500 jobs worldwide. The company revealed that the new round of layoffs will affect 9% of its workforce and that this exercise is part of an organizational and technological transformation.
The restructuring follows Expedia's recent warning that revenue is expected to stabilize in 2024 due to falling airline ticket prices, coupled with the announcement of CEO Peter Kern's resignation.
“The company continues to evaluate the appropriate allocation of resources to ensure that the most important work continues to be prioritized,” said an Expedia Group spokesperson.
Travel companies are adjusting their forecasts for 2024, indicating an expectation of slower demand growth for the year. Booking Holdings recently forecast a deceleration in booking growth in the first quarter and full year as U.S. travel demand returns to normal levels.
According to Expedia's regulatory filing, these layoffs will result in an $80 million to $100 million impact on its net income, attributable to severity and compensation costs. Over time, Expedia has expanded its portfolio through the acquisition of numerous online travel booking platforms.
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