Expedia to cut about 1,500 jobs as travel demand moderates

According to a report by the Bloomberg news agency, some of the Expedia employees have started receiving communications about the job reductions.

The Seattle-based travel company employed 17,100 people in more than 50 countries as of the end of 2023, with about half working in technology roles, according to the company’s annual report.

Earlier this month, Expedia reported disappointing holiday results and issued a weaker-than-expected outlook for the current quarter.

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In the fourth quarter, Expedia reported gross bookings of $21.7 billion, missing analysts’ average estimate of $22 billion.

Expedia is prioritizing boosting sales this year after spending the past two years focusing on technical upgrades. While its consumer business has slowed to single-digit revenue growth in the past two quarters, Expedia’s enterprise division, which sells advertising and travel technology to corporate clients and powers travel booking websites for major brands like Walmart Inc. and American Express Co., has been contributing double-digit gains to the business, Bloomberg reported.

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The company also announced a leadership change with Ariane Gorin, the leader of the fast-growing enterprise division, taking over as chief executive officer on May 13.

Total pre-tax charges and cash expenditures associated with the restructuring actions are expected to be between $80 million and $100 million, Expedia said.

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Travel companies are tempering expectations for 2024, a sign that demand is expected to grow more slowly this year.

Expedia and its online travel peers such as Airbnb Inc. and Booking Holdings are contending with moderating travel growth as pent-up demand from the post-pandemic period last year appears to be running out of steam.

(With Bloomberg inputs)

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Published: 27 Feb 2024, 09:08 AM IST