Expedia to cut about 1,500 jobs globally amid moderating travel demand

Expedia, a prominent player in the online travel industry, revealed plans on Monday to slash approximately 1,500 jobs worldwide, marking a reduction of about 9% of its workforce. This move is part of the company's broader strategy aimed at organisational and technological overhauls.

The restructuring initiative follows a recent cautionary announcement by Expedia, wherein it anticipated a moderation in revenue for the year 2024. Factors contributing to this projection include a decline in air ticket prices. Additionally, the departure of CEO Peter Kern has been confirmed in the wake of these developments.

A spokesperson for Expedia Group commented, "The business continues to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritised."

The prevailing sentiment within the travel sector suggests a tempered outlook for the year 2024, signalling a slower pace of growth compared to previous years. Last week, Booking Holdings also projected a deceleration in first-quarter and full-year growth, citing a normalisation of US travel demand.

Expedia estimates total pre-tax charges and cash expenditures related to the restructuring efforts to fall within the range of $80 million to $100 million.

Despite the workforce reduction announcement, shares of Expedia witnessed marginal gains in aftermarket trading.