Expedia Group, based in Seattle, has informed an unspecified number of employees within its technology organization that their positions will be eliminated. This move is part of Expedia Group’s ongoing efforts to restructure its workforce and align its operations for future growth.
The impacted employees belong to Expedia Group’s Traveler Products team, a component of the larger Product & Technology organization led by Chief Technology Officer Rathi Murthy.
Tript Singh Lamba, a Senior Vice President at Expedia Group, addressed the internal changes in an email message. He stated, “As we have begun looking to 2024, it is important that we are ready to ‘Build the world’s most loved AI-powered travel apps.’ These changes to our org will help us take the next steps to move quickly and stay tightly aligned while simplifying where we can.”
While the primary focus of the internal communication was the leadership changes, it also mentioned the departure of Eric Toyofuku, Vice President of Research and Advocacy, who is leaving Expedia Group to pursue other opportunities. Additionally, it noted the arrival of Jonathan Finch, formerly the Global CTO for Amazon Insurance, who will lead Expedia Group’s InsurTech business.
Expedia Group did not disclose specific details regarding the number of employees affected by the layoffs in response to inquiries. However, the company affirmed its commitment to delivering exceptional travel experiences for its customers while acknowledging that the workforce adjustments are part of its ongoing business transformation.
The travel giant has undertaken targeted layoffs this year after facing more widespread workforce reductions during the COVID-19 pandemic when the travel industry was severely impacted by restrictions.
Despite these reductions, Expedia Group has continued to hire for certain technology positions, taking advantage of opportunities arising from layoffs at other major tech firms earlier in the year.
Expedia Group, which includes brands such as Vrbo, Orbitz, Hotwire, Trivago, and Hotels.com alongside its flagship site Expedia.com, has unified its tech platform across its various brands in recent years. It also introduced a unified travel loyalty program called One Key for Expedia, Hotels.com, and Vrbo.
Expedia Group employed over 25,000 people in 2019 but reduced its workforce to 14,800 by the end of 2021, with nearly half in tech-related roles. By the end of 2022, it had increased its workforce to 16,500, with over half in tech positions. The company has indicated that it will release a new employee count publicly at the end of the year.
Despite increased employment and compensation expenses, Expedia Group reported a 14% rise in overhead expenses in the second quarter, reaching $627 million. Nevertheless, the company was able to post a $385 million profit in the quarter, a significant improvement from the $185 million loss it reported a year earlier, thanks in part to record revenue of $3.36 billion, representing a 5% increase.