- Expedia Group is laying off 12% of its workforce and making other cost-cutting changes after a 2019 that company execs described as "disappointing" in an email.
- The news follows a Q4 2019 earnings call in which Chairman Barry Diller slammed the company for being "sclerotic and bloated."
- Expedia Group includes numerous travel brands such as HomeAway, Hotels.com, Orbitz, Travelocity and Vrbo.
Online travel conglomerate Expedia Group is cutting 12% of its workforce, or about 3,000 jobs, after a "disappointing" 2019, the company said.
Company executives sent an email announcing the changes on Monday afternoon, writing "we recognize that we have been pursuing growth in an unhealthy and undisciplined way" and calling the company's performance in 2019 "disappointing." In addition to eliminating 12% of its workforce, the company will also cut costs by ending unspecified projects and reducing its use of contractors and vendors, a spokesperson said.
The news was previously reported by Geekwire.
The layoffs follow a Q4 earnings call earlier in February in which Chairman Barry Diller slammed the company's processes and work ethic, saying it had become "sclerotic and bloated" and that employees were "all life and no work" for several years. During that call, the company said it was targeting $300 million to $500 million of run-rate cost savings across its business.
Diller and Vice Chairman Peter Kern took over the day-to-day operations at Expedia after former CEO Mark Okerstrom and CFO Alan Pickerill stepped down in December. At the time, Diller said the leadership changes resulted from disagreements over strategy between senior management and the board. In addition to its flagship travel site, the company includes numerous travel brands such as HomeAway, Hotels.com, Orbitz, Travelocity and Vrbo.
Shares rose slightly after hours on the news after falling more than 6% during Monday trading amid a broader stock market plunge.
Spokespeople for Expedia did not immediately return requests for comment.
Annie Palmer contributed to this report.