What just happened? Online travel giant Expedia has committed to a restructuring effort designed to simplify the company’s businesses and improve operational efficiencies. As is often the case with these sorts of matters, the revamp involves a somewhat significant number of job cuts.
Per GeekWire, Expedia will eliminate 12 percent of its workforce, or around 3,000 jobs. The cuts were later confirmed to CNBC by a company spokesperson.
In the short term, the job cuts will cost the company between $135 million and $185 million in severance and compensation benefits, Expedia revealed in a filing with the Securities and Exchange Commission.
An e-mail obtained by GeekWire that was sent to Expedia staff on Monday said the travel leadership team has spent the last few months determining a better way forward after a disappointing 2019. The review showed that the company has been pursuing growth in an “unhealthy and undisciplined way.”
“Moving forward, we will exert more discipline in setting priorities and allocating resources, simplify our business processes and inter-dependencies, raise the bar on performance standards, and demonstrate and demand accountability for results.”
Indeed, Expedia has been a bit acquisition-heavy in recent memory. In January 2015, the company agreed to pay $280 million for online travel site Travelocity before dropping $1.6 billion to nab travel fare aggregator Orbitz just a couple of weeks later.
Expedia was run by Dara Khosrowshahi for more than a decade before the executive defected to Uber in mid-2017.
Masthead credit: Expedia building by VDB Photos.