Expedia Group Axes Tech Roles Amid Overhaul
Executives Undergo Reshuffle: Key VP Departs, New CTO for InsurTech Onboards
SEATTLE – Expedia Group (EXPE), a travel industry heavyweight, has announced a series of workforce changes, including the elimination of several tech roles, hinting at a broader company shift towards AI-driven travel applications. Simultaneously, the Seattle-based company is experiencing significant executive reshuffling, marked by departures and new appointments.
Expedia's workforce overhaul involved letting go of an unspecified number of employees from its Traveler Products team, a part of the larger Product & Technology organization headed by Chief Technology Officer Rathi Murthy. The decision is in line with the company’s forward-looking strategy. “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,’” said Tript Singh Lamba, an Expedia Group senior vice president, in an internal message.
Yet, the focal point of the internal communique was the executive leadership transition. Eric Toyofuku, Vice President of research and advocacy, is stepping down from his role to explore other avenues. Meanwhile, Jonathan Finch, previously the Global CTO for Amazon Insurance, is set to spearhead Expedia’s burgeoning InsurTech business.
Headcount undisclosed
The specific number of layoffs remained undisclosed, but an Expedia spokesperson emphasized the company's dedication to delivering exceptional travel experiences and stated that this operational alignment led to certain role eliminations. They noted, “We remain confident in our strategy and value the contribution of all our employees.”
This isn't the first time Expedia has recalibrated its workforce this year. Widespread cutbacks occurred just before the pandemic's onset, reflecting the tumultuous wave hitting the travel sector due to COVID-19. However, the firm has been on a hiring spree for specific tech roles lately, often benefiting from layoffs by other prominent tech enterprises.
Having touched an employment high of over 25,000 in 2019, Expedia Group's headcount dwindled to 14,800 by 2021's end, nearly half of whom were in tech. But 2022 saw a revival with numbers climbing to 16,500, a majority again in tech. The official count for 2023 remains a tightly kept secret till the year's close.
Strong financial quarter
Despite higher overheads, chiefly due to augmented employment and salaries - rising 14% in Q2 to $627 million, Expedia Group boasted a strong financial quarter. With a revenue surge of over 5%, amounting to $3.36 billion, they reversed a previous year's loss, registering a commendable $385 million profit.
The umbrella of Expedia Group houses renowned brands like vrbo, Orbitz, Hotwire, Trivago, and Hotels.com, besides the mainstay Expedia.com. Their tech platforms have amalgamated over recent years, leading to the recent debut of their unified travel loyalty initiative, One Key for Expedia, Hotels.com, and vrbo.
