Expedia Group will cut about 9% of its workforce after announcing management changes earlier this month, while the online travel company looks to restore growth and regain market share.
The Seattle-based company will cut approximately 1,500 jobs worldwide as it “invests in core strategic areas for growth,” a company spokesperson said in an email. “Given the recent completion of a number of important technical milestones in Expedia Group's transformation, we continue to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritized.” the spokesperson added.
Some affected employees began receiving communications regarding layoffs on Monday, according to regulatory filings. The company will employ 17,100 people in more than 50 countries at the end of 2023, about half of them in technology jobs, according to its latest annual report.
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Earlier this month, Expedia reported disappointing holiday results and issued a weaker-than-expected outlook for the current quarter. The company also announced that Arian Gorin, leader of its fast-growing enterprise division, will become CEO on May 13, replacing Peter Kahn, who has held the role since 2020.
The company and online travel companies like Airbnb and Booking Holdings Inc. are grappling with reining in travel growth as demand appears to be drying up after last year's pandemic.
Expedia has spent the past two years focusing on technological upgrades and a much-needed revamp of its loyalty program, but this year it is prioritizing revenue growth. The company's consumer business, which has slowed to single-digit revenue growth over the past two quarters, sells advertising and travel technology to business customers and operates travel booking websites for major brands such as Walmart and American Express. Expedia's enterprise division contributed twice as much. It brings an order of magnitude profit to your business.
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