Expedia to cut 8% of workforce in restructuring effort
Expedia Group is planning to cut about 1,500 jobs and reduce the size of its workforce by about 8% as it continues a restructuring effort after undergoing a technical overhaul.
Expedia Group on Monday said that it will cut about 1,500 jobs, or roughly 8% of its workforce, as part of its latest restructuring effort.
The travel technology company, which aggregates travel fares and allows users to book flights and lodging from its platforms, had about 17,100 employees in over 50 countries at the end of last year. Expedia Group operates Expedia.com and also serves as the parent company of brands including Vrbo, Hotels.com, Orbitz, Hotwire and Travelocity, among others.
Expedia Group said in a regulatory filing that it expects the restructuring will result in about $80 million to $100 million in total pre-tax charges and cash expenditures, most of which will go to employee severance and compensation benefit costs.
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"Given the recent completion of many significant technical milestones in Expedia Group's transformation, the business continues to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritized," an Expedia Group spokesperson told FOX Business in a statement.
"As a result, this year we will be reviewing our operations which we expect will result in approximately 1,500 roles being impacted across the globe," the statement continued. "While this review will result in the elimination of some roles, it also allows the company to invest in core strategic areas for growth."
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"Consultation with local employee representatives, where applicable, will occur before making any final decisions," the company's statement concluded.
Expedia Group's stock was down nearly 1% during Monday's trading session — though it rose by about 0.67% in after-hours trading.
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Reuters contributed to this report.