New York
CNN
—
Expedia, the web journey company, is eliminating about 1,500 workers as a part of an “organizational and technological transformation.”
The cuts, which quantity to almost 9% of its 17,100-strong international workforce, come amid slowing journey demand following a post-pandemic boom and a broader shakeup on the firm, together with a brand new CEO.
“Given the current completion of many important technical milestones in Expedia Group’s transformation, the enterprise continues to judge the suitable allocation of sources to make sure an important work continues to be prioritized,” an organization spokesperson mentioned in an announcement to CNN.
Expedia (EXPE) mentioned in a regulatory filing that the cuts will lead to an $80 million to $100 million cost to its backside line due to severance and compensation advantages prices. Over time, Expedia has acquired a number of on-line touring reserving platforms together with Accommodations.com, Vrbo, Orbitz, Hotwire.com and Travelocity.
Particular particulars of the place the layoffs will happen wasn’t revealed. An Expedia spokesperson mentioned that the modifications “will outcome within the elimination of some roles” that “permits the corporate to spend money on core strategic areas for development.”
Expedia had beforehand introduced that CEO Peter Kern was departing his function. Ariane Gorin, who’s president of Expedia for Enterprise unit, will take over the place in Could when Kern’s contract ends.
The management change and job cuts come after the corporate posted a revenue that got here in under analysts’ expectations and mentioned its income will average this yr as costs for flight tickets decline. The grounding of Boeing’s 737 Max 9 fleet additionally dented bookings.