Seattle-based online travel giant, Expedia Group, is streamlining its operations by reducing its workforce by approximately 9 per cent, impacting around 1,500 employees. This strategic move comes amidst a recent leadership change and aims to revitalise growth and recapture market share.
The restructuring will allow Expedia to invest more heavily in key areas for future expansion, following a period focused on technical enhancements, according to a company spokesperson. This shift in focus aligns with the recent appointment of Ariane Gorin as CEO, effective May 13. Gorin, previously leading the fast-growing enterprise division, is expected to drive a renewed growth strategy.
The decision follows disappointing holiday sales and a lower-than-expected outlook for the current quarter. In Q4 2023, Expedia’s gross bookings fell short of analyst expectations, reaching $ 21.7 billion compared to the anticipated $ 22 billion. The company faces challenges from online travel competitors such as Airbnb and Booking Holdings, necessitating a strategic shift.
The job reductions, affecting around 9 per cent of the company’s 17,100 employees as of 2023, were communicated to impacted individuals starting on Monday. Notably, around half of Expedia’s workforce is already engaged in technology-related roles, highlighting the company’s continued commitment to technical advancements alongside its renewed focus on growth.
This strategic restructuring, coupled with a leadership change, signifies Expedia’s proactive approach to navigating a competitive landscape and positioning itself for future success.
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