by Lacey Pfalz
Last updated: 9:25 AM ET, Tue February 27, 2024
Expedia is cutting nine percent of its workforce, about 1,500 jobs, as it begins preparing for a new CEO and a year with moderate revenue as air prices are predicted to drop.
An Expedia Group spokesperson told Reuters: “The business continues to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritized.”
The total pre-tax charges and cash expenditures with the restructuring are estimated to be around $80 million to $100 million.
Ariane Gorin, President of Expedia for Business, will replace Peter Kern as CEO of Expedia Group on May 13, 2024. She’s been an executive for Expedia since 2013 and most recently headed the 33 percent B2B revenue growth the business side of Expedia experienced in 2023.
As we continue leaving the pandemic behind, many are predicting that this year, we’ll begin seeing a travel demand start leveling off. A report by Booking Holdings agrees with this prediction, citing that higher travel expenses, a global cost-of-living crisis and two wars are major reasons for the moderation.
Yet there’s also good news: NerdWallet’s most recent Travel Price Index reported that airfare will drop at least a few percentage points this year, and car rental prices continue to drop — though overall travel is 12 percent higher in cost than its January 2020 cost.
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