Expedia Group Inc., the Seattle-based online travel giant, is slashing its workforce, delivering pink slips to approximately 1,500 employees globally, including 208 in Seattle, the company confirmed in a regulatory filing with the Securities and Exchange Commission. The layoffs represent roughly 6% of the company's Seattle workforce and are part of a broader effort to restructure amid what the company characterizes as an "organizational and technological transformation," according to a Business Journal report.
The dismissals, which are set to take place starting May 1, come on the heels of a strategic evaluation under the direction of outgoing CEO Peter Kern. The restructuring action appears to be a substantial one;, its fallout includes an estimated financial charge of between $80 million and $100 million due to severance and other compensation benefits, KOMO News reported.
In discussing the need for these job cuts, an Expedia spokesperson highlighted the company's priorities, stating, "The business continues to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritized," acknowledging that the review will lead to the elimination of some roles while also enabling the company to concentrate on key strategic growth areas. This statement was revealed in an email to the Business Journal.
This wave of layoffs is the latest in a series of reductions that began nearly four years ago, when Expedia disclosed plans to cut roughly 12% of its direct workforce. The cuts that followed impacted around 500 Seattle employees, out of 3,000 worldwide. At the time, the company acknowledged that its previous rate of expansion had been "unhealthy and undisciplined," as reported by The Seattle Times. As part of the ongoing operational review, Kern also announced earlier this month his decision to step down in May; Ariane Gorin, the current president of Expedia for Business, is set to take his place.
The state's employment office, validated by a notice from the Employment Security Department, has been notified of the upcoming layoffs. The job cuts follow a tumultuous period for the travel industry, which has been seeking stability in the post-pandemic marketplace as consumer behavior and business models continue to evolve.
