Expedia Group Inc. (EXPE) announced on Monday that it will cut 3,000 jobs worldwide, Reuters reports.
What Happened
The Seattle headquartered company employs 25,400 people worldwide and has plans to lay-off 3,000 or 12% of its total workforce. In an email to employees, the travel booking company explained, “We are announcing our intent to reduce and eliminate certain projects, activities, teams, and roles to streamline and focus our organization” reported Reuters. The company’s headquarters would see 500 positions cut.
Why It Matters
Expedia Group Chairman Barry Diller and Vice Chairman Peter Kern had previously announced the execution of $300-500 million worth of cost cuts during 2020. Expedia is viewed as a “bloated company,” having increased employee numbers from 24,500 at the end of 2018 to 25,400 by Dec 31, 2019. In December, the company’s top executives, CEO Mark Okerstrom and CFO Alan Pickerill, resigned due to disagreement between the executives and the board regarding the company strategy and future efforts. The company’s acting CFO Eric Hart has forecast a $30 million to $40 million hit to Expedia’s earnings from the ongoing Covid-19 epidemic.
Price Action
Expedia shares traded 0.61% higher at $113 in the after-hours session on Monday. The shares had closed the regular session 6.50% lower at $112.31.
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