Expedia Group anticipates that approximately 1,500 positions will be affected, mainly within its Product & Technology division, as part of an operational review detailed in an internal memo to the company’s employees by CEO Peter Kern today.
Kern stated in the memo, obtained by GeekWire, “With significant technical progress made over the past year and considerable technical debt addressed, it’s now imperative for us to assess roles, skills, teams, and locations to ensure optimal resource allocation.” He added, “While this review will lead to the elimination of certain positions, it will also enable us to continue investing in core strategic areas.”
On February 8, Expedia Group announced Kern’s forthcoming resignation as CEO in May, with Ariane Gorin, the current president of Expedia for Business, set to assume the role. Kern will retain his position as vice chairman and remain on the board.
In a statement on Monday, an Expedia Group spokesperson corroborated the key points of Kern’s memo, confirming that the operational review “will result in approximately 1,500 positions being affected globally” this year. Update: In a subsequent regulatory filing, Expedia Group disclosed pre-tax charges of $80 million to $100 million related to the restructuring.
During the company’s fourth quarter earnings call on February 8, Expedia Group Chief Financial Officer Julie Whalen hinted at potential restructuring, stating that the company was “closely evaluating streamlining our cost structure to align with the next phase of our journey.”
Expedia Group underwent extensive restructuring just before the onset of the pandemic, following the removal of its CEO and CFO in December 2019. Media magnate Barry Diller, Expedia Group’s chairman, and Kern, its vice chairman, assumed interim management responsibilities at that time, before Kern’s appointment as CEO in April 2020.
Although the company faced significant challenges due to COVID-19 travel restrictions and industry-wide impacts, it has since recovered, reporting record annual revenue of $12.8 billion and profits of $797 million in 2023.
Following its peak employment of over 25,000 in 2019, the company employed 14,800 individuals as of 2021. While Expedia Group has implemented smaller workforce reductions in recent years, including unspecified job cuts within its Traveler Products team last year, its total workforce increased to 17,100 by the end of 2023, with approximately half of these positions in technology roles, as per Expedia’s annual 10-K filing.
Expedia Group encompasses brands such as Vrbo, Orbitz, Hotwire, Trivago, and Hotels.com, alongside its flagship Expedia.com. The company has unified its technological platform across its various brands in recent years and introduced a unified travel loyalty program called One Key for Expedia, Hotels.com, and Vrbo last year.
Please see Kern’s full memo below for further details.
Team,
We’ve gone through a massive transformation and changed almost every aspect of our business, including how we’re structured, how our teams work together, and what we’re focused on to deliver the best experiences for our travelers and partners. Through this journey we have consistently had to evaluate how we allocate resources to the most important work to ensure we are as efficient as possible in driving our growth.
With so much technical achievement over the last 12 months and so much tech debt behind us, we now are obliged to take a close look at roles, skills, teams, and locations to ensure that our resources are focused in the right areas. 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, mainly in our Product & Technology division. As always, we will be engaging in consultation with local employee representatives, where applicable, before making any final decisions. While this review will result in us eliminating some roles, it will also allow us to continue to invest in core strategic areas.
Where we already have clarity on the proposed changes, we will be notifying employees as soon as possible. If your role is impacted or potentially affected, you can expect to hear details from either your leader, the People Team, or your local employee representative within the next week.
I know my message may make some of you feel anxious, so I wanted you to hear this news directly from me. 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. While the needs of a company may evolve, this does not diminish the contributions you have made to our success now and in the future.
It is never easy to say goodbye to colleagues. For those of you who do end up leaving us, a sincere thank you and we wish you every success in your future endeavors. We will be doing everything we can to support you, including providing severance packages, extended access to the Employee Assistance Program, and providing support for those who want to apply for another role internally.
Thank you to everyone who has helped get us to this point in our transformation. Please treat each other with empathy and take advantage of our wellbeing resources if you need support.
PK
