Expedia Group Inc. announced late Monday its plans to lay off approximately 1,500 employees as part of its efforts to “recalibrate resources.”
Expedia, a well-known online travel company that also includes brands like VRBO and Hotels.com, has already begun notifying affected employees about the layoffs. The company stated in a filing with U.S. securities regulators that it is fully committed to the restructuring actions that led to this decision.
Financial Impact and Costs
All expenses related to the restructuring, including pre-tax charges, are anticipated to be recorded within this year, amounting to $80 million to $100 million. These costs primarily cover employee severance and compensation benefits.
Stock Performance and CEO Change
Following the announcement, Expedia’s stock saw a slight uptick during after-hours trading on Monday, having closed down 1% during regular trading hours.
Despite posting better-than-expected quarterly earnings, Expedia surprised Wall Street with news of a CEO change earlier in the month. Year-to-date, Expedia’s stock has declined by 11%, a stark contrast to the S&P 500 index, which has seen a 6.3% increase.
On a 12-month basis, Expedia’s stock performance closely mirrors that of the S&P 500, with a 29% increase compared to the index’s 28% advance.