Restructuring announcement comes as CEO Peter Kern set to step down this year
Travel tech firm Expedia Group has announced that it will be laying off roughly 1,500 employees this year, or about nine per cent of its global workforce.
Expedia's financial statement filed to the Security and Exchange Commission (SEC) said the restructuring aims to "recalibrate resources in light of the company's organisational and technological transformation."
"The restructuring actions are expected to result in a workforce reduction impacting approximately 1,500 employees and the communication of such actions to a portion of affected employees was commenced on February 26, 2024," the statement read.
Total pre-tax charges and cash expenditures associated to the move are expected to range between $80 million and $100 million, mostly due to employee severance and compensation benefits costs, according to Expedia.
Expedia, which has 17,100 employees globally, owns and operates brands such as Hotels.com, Orbitz, Trivago, among others.
Layoff memo to employees
Expedia CEO Peter Kern told employees that the "deepest cuts" would be felt in the company's product and technology teams, according to reports.
"I know my message may make some of you feel anxious, so I wanted you to hear this news directly from me," Kern said as quoted by the UPI. "We are extremely grateful for every Expedian's contributions, and I know we wouldn't be where we are today without the contributions of every member of our team."
The memo comes in the heels of Kern's announcement that he would be stepping down as CEO, with Ariane Gorin to take over effective May 13.
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Kern will remain as the company's vice chairman and member of the Board of Directors, and is also expected to work closely with Gorin amid the transition.
"I am proud of and grateful to the team we have built at Expedia Group and the tenacity and resilience they demonstrated as we worked through an incredibly ambitious and challenging transformation. We have quite literally reset the Company for the future, and we are in position to lead our industry for decades to come," Kern said in a statement.
"As Vice Chairman, I look forward to working closely with Ariane and our leadership team as they continue the momentum we have built and realize on all the opportunity that our transformation has created."