Expedia announces global workforce reduction:  Report

Responding to a forecasted moderation in travel demand, online travel giant Expedia has announced plans to reduce its global workforce by approximately 1,500 jobs, constituting about 9 per cent of its total employee base.

This is based on a Reuters report.

This move is part of the company's broader initiative for "organisational and technological transformation."

Expedia's restructuring efforts come in the wake of recent warnings regarding the anticipated moderation in revenue for the year 2024.

The company highlighted factors such as declining air ticket prices as contributing to this forecast.

An Expedia Group spokesperson noted the ongoing evaluation of resource allocation to ensure the prioritisation of essential tasks amid these transformations.

The adjustment in Expedia's workforce is representative of broader trends within the travel industry.

As travel companies grapple with expectations of slower growth in 2024, there's a collective acknowledgment of the need to recalibrate strategies in response to shifting consumer behaviours and market conditions.

Booking Holdings, a key player in the travel sector, has also adjusted its forecasts to reflect a tempered outlook for the first quarter and full-year bookings.

The move aligned with the broader narrative of the industry, indicating a cautious approach in light of the normalisation of US travel demand.

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

Following the announcement, Expedia's shares witnessed marginal gains in aftermath trading.

(With inputs from Reuters)