Expedia, the US-based online travel platform, announced on Monday its plans to reduce its global workforce by nearly 1,500 employees, constituting roughly 9 per cent of its total staff. This call comes as part of Expedia's efforts toward organizational and technological transformation.
Earlier this month, the online travel booking company issued a warning about the expected moderation of revenue in 2024 due to declining air ticket prices, as per a report by Reuters. At the same time, CEO Peter Kern announced his decision to step down, prompting the company's restructuring efforts.
Travel companies are adjusting their expectations for 2024, owing to slower growth in demand for the year ahead. Booking Holdings recently projected reduced growth in bookings for both the first quarter and the full year, citing the normalization of travel demand in the United States, as per the report.
An Expedia Group spokesperson stated that the company is currently assessing the optimal distribution of resources to prioritize essential tasks. "The business continues to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritized," the company spokesperson stated.
This news comes at a time when several tech companies have been announcing layoffs since the inception of this year.
Marc Zuckerburg, during the Morning Brew's Daily Podcast, mentioned that the majority of the layoffs occurred because companies had over-expanded their operations during the pandemic, driven by the surge in e-commerce. He said that as the situation returned to normal, companies recognized that they had overstaffed and needed to reduce their workforce.
