Expedia to slash 3000 jobs worldwide

Andrew Cummings
February 27, 2020

ONLINE travel giant Expedia will cut 3,000 jobs worldwide after what the company called a "disappointing" performance a year ago, U.S. media reported yesterday. "We have been pursuing growth in an unhealthy and undisciplined way", the Expedia email said, according to Geekwire.

Shares rose slightly after hours on the news after falling more than 6% during Monday trading amid a broader stock market plunge.

The online travel services company had 25,400 employees globally as of 31 December.

In addition to the job cuts, the company also aims to eliminate and reduce the number of certain unspecified projects, activities, and associations with some vendors and contractors. In some countries, such consultations may be legally required.

The move comes after company chairman Barry Diller criticized Expedia as "sclerotic and bloated" during an earnings call following a "disappointing" fourth-quarter performance, promising $300 million to $500 million of cost savings across its business.

"We are stopping doing dumb things and start doing what we think are good things", Diller added.

Diller and Vice Chairman Peter Kern took over the day-to-day operations at Expedia after former CEO Mark Okerstrom and CFO Alan Pickerill stepped down in December. At the time, Diller said the leadership changes resulted from disagreements over strategy between senior management and the board.

Expedia reported revenues of $12.1 billion for 2019 - an 8% increase year-on-year - with its 2019 profits totaling $565 million.

Yet these figures arguably don't reflect the bigger industry picture.

Expedia has said it will dismiss around 3,000 members of staff, including 500 at its headquarters in Seattle.

It's a particularly worrying state of affairs, as - by their very nature - online travel firms like Expedia are deeply dependent on Google.

Other reports by iNewsToday