Expedia reportedly slashes 12% of workforce following plans to simplify ops

Daniel Fowler
February 27, 2020

Online travel service Expedia Group will cut 3,000 jobs, or about 12 percent of its direct workforce, after registering "disappointing" fourth quarter results, the company announced.

Expedia is planning to lay off 12% of its global workforce, citing its disappointing 2019 business performance and an "unhealthy and undisciplined" growth strategy.

In its last financial report published in December 2019, the company said it aims to simplify operations and increase efficiency.

The company will begin notifying employees this week in geographies "where we have clarity" and in others the company will begin consultations with employees and their representative to discuss certain plans, the email said. During that call, the company said it was targeting $300 million to $500 million of run-rate cost savings across its business. The cuts will include 500 people at Expedia's Seattle headquarters. The move was made with an effort to facilitate growth and streamline the business of the Seattle-based online giant under the chairman, Barry Diller.

During a February 13 earnings call, Mr Diller called the organization "bloated" and said many employees didn't know what "they were supposed to do during the day".

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In December 2019, its then-CEO, Mark Okerstrom and its then-CFO Alan Pickerill both resigned after clashing with Diller and the board over the firm's future direction. "We have restarted the journey and bringing the world within reach is in our hands".

In a statement addressing their resignations, Diller said the board had disagreed with "the departing leadership's vision for growth".

Expedia's share price rose 1.4 per cent after markets opened today.

Expedia has declined to comment on Marketing's queries.

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