Expedia to Cut 1,500 Jobs Ahead of CEO Transition and Predicted Airfare Drop

Expedia Group is set to reduce its workforce by nine percent, approximately 1,500 jobs, as it prepares for a new CEO and a year with expected moderate revenue due to predicted drops in air prices.

The restructuring is estimated to result in pre-tax charges and cash expenditures of around $80 million to $100 million. A spokesperson for Expedia Group stated, “The business continues to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritized.”

Ariane Gorin, currently President of Expedia for Business, will succeed Peter Kern as CEO of Expedia Group on May 13, 2024. Gorin, an executive at Expedia since 2013, led the 33% B2B revenue growth experienced by the company in 2023.

While travel demand is expected to level off this year as the world emerges from the pandemic, factors such as higher travel expenses, a global cost-of-living crisis, and geopolitical tensions are contributing to the moderation, according to a report by Booking Holdings.

Despite these challenges, there is some positive news. NerdWallet’s Travel Price Index indicates that airfare is expected to decrease by a few percentage points in 2024. Additionally, car rental prices are continuing to decline, although overall travel costs remain 12% higher than they were in January 2020.