Following a “disappointing” 2019, online travel business Expedia Group is slated to cut approximately 12% of its workforce, equivalent to 3,000 workers. The company reportedly emailed executives Monday afternoon regarding the decision to reduce costs and investments in several projects, reports CNBC.
The email sent out to company employees stated that it aims to “reduce and eliminate certain projects, activities, teams, and roles to streamline and focus our organisation.”
The online travel agency’s decision comes after the Q4 earnings call held earlier in February 2020, where Chairman Barry Diller called the firm’s work ethic as “sclerotic and bloated,” resulting to employees participating in a culture where “all life and no work” was observed for several years. The fourth quarter of 2019 saw the corporation’s net income falling by 4% or roughly $174 million, notes the Financial Times.
In a comparison done by Diller himself against another Seattle-based firm, he said the environment observed by the company was “not damning to our employees. But for several years, we really lost clarity and discipline. So we’re changing a great deal.”
Once the layoffs have started, CNBC states the conglomerate is slated to come about savings ranging from $300 to $500 million.
In a statement released by the Expedia Group spokesperson, the company said, “Transitions like this are difficult as the impact is felt by teammates, colleagues, and friends we have known and partnered with through ups and downs. For those who will be leaving, we thank you for your many contributions to Expedia Group and wish you safe travels as you find your next opportunity.”
The company is still finalizing the countries where the layoffs would apply, reports CNN.
Despite the latest turn of events, the company remains committed and invested in growing its business in the Seattle area, where 500 jobs would be allocated. The Financial Times revealed that Expedia opened a $900-million headquarters last October 2019.
