EXPE
Expedia Group, INC
NASDAQ
8-K: Expedia Group Announces Restructuring, Workforce Reduction of 1,500 Employees
Sentiment:
Current Report
26 February 2024 5:00 PM
Expedia Group will undergo restructuring, resulting in a workforce reduction of approximately 1,500 employees and incurring pre-tax charges of $80 to $100 million.
Worse than expected
The company is incurring significant costs due to restructuring and is reducing its workforce, which is generally viewed negatively by investors.
Summary
- Expedia Group has committed to restructuring actions to better align resources with its organizational and technological transformation.
- This restructuring will result in a reduction of approximately 1,500 employees.
- The company expects to record pre-tax charges and cash expenditures between $80 million and $100 million in 2024 related to the restructuring.
- These costs are primarily related to employee severance and compensation benefits.
- Communication of these actions to affected employees began on February 26, 2024.
Sentiment
Score: 3
Explanation: The announcement of a significant workforce reduction and associated costs is generally viewed negatively by the market, indicating a challenging period for the company.
Negatives
- The company will reduce its workforce by approximately 1,500 employees.
- Expedia will incur significant pre-tax charges and cash expenditures of $80 million to $100 million in 2024.
Risks
- The restructuring actions are subject to risks and uncertainties that could cause actual results to differ materially from the company's expectations.
- The company's forward-looking statements are based on current estimates and assumptions, which may not materialize.
Future Outlook
The company's forward-looking statements are subject to risks and uncertainties, and actual results could differ materially from expectations. The company does not assume any obligation to update these statements.
Management Comments
- The restructuring actions are intended to recalibrate resources in light of the company's organizational and technological transformation.
Industry Context
Restructuring and workforce reductions are not uncommon in the tech and travel industries as companies adapt to changing market conditions and technological advancements. This move by Expedia could be seen as a response to competitive pressures and a need to streamline operations.
Comparison to Industry Standards
- Other large tech and travel companies have also undertaken restructuring efforts in recent times, such as Booking Holdings and Tripadvisor, indicating a broader trend in the industry to optimize operations and reduce costs.
- The scale of Expedia's workforce reduction, approximately 1,500 employees, is significant but not unprecedented in the context of large-scale corporate restructurings.
- The estimated pre-tax charges of $80 to $100 million are within the typical range for companies undergoing similar restructuring activities.
Stakeholder Impact
- Shareholders may react negatively to the news of restructuring and associated costs.
- Employees will be impacted by the workforce reduction, with approximately 1,500 employees losing their jobs.
- The restructuring may impact the company's ability to deliver services and products in the short term.
Key Dates
- February 22, 2024: Expedia Group committed to restructuring actions.
- February 26, 2024: Communication of restructuring actions to affected employees commenced.
Keywords
restructuring, workforce reduction, severance, cost cutting, organizational transformation, employee benefits, expedia
EXPE
Expedia Group, INC
NASDAQ
Sector: TBD
Filings with Classifications
Worse than expected
8 May 2025 9:38 PM
Quarterly Report
- The company reported a net loss attributable to Expedia Group, Inc. of $200 million, compared to a net loss of $135 million in the same period last year.
- Weaker than expected travel demand in the U.S. was experienced during the first quarter of 2025.
Better than expected
8 May 2025 4:01 PM
Earnings Release
- The bottom line meaningfully beat guidance.
Capital raise
21 February 2025 4:40 PM
Debt Offering Announcement
- Expedia Group completed a registered public offering of $1 billion aggregate principal amount of unsecured 5.400% Senior Notes due 2035.
- The net proceeds from the Senior Notes Offering were approximately $985 million, after deducting discounts and estimated offering expenses payable by Expedia Group.
- Expedia Group intends to use the net proceeds from the Senior Notes Offering for general corporate purposes, including, without limitation, (i) repayment, prepayment, redemption or repurchase of outstanding debt, (ii) dividends and stock repurchases and (iii) funding for working capital, capital expenditures, and acquisitions.
Better than expected
6 February 2025 4:02 PM
Earnings Release
- The company's Q4 results exceeded expectations due to strong execution and better-than-expected travel demand.
- B2C and B2B gross bookings growth accelerated 5 points to 9% and 24% respectively in Q4.
- Net income grew 124% and adjusted net income grew 30% year-over-year in Q4.
Better than expected
7 November 2024 5:33 PM
Quarterly Report
- The company's net income attributable to Expedia Group, Inc. increased significantly year-over-year.
- Gross bookings and adjusted EBITDA also showed positive growth, indicating better than expected performance.
Better than expected
7 November 2024 4:03 PM
Quarterly Report
- The company's results exceeded expectations for gross bookings and earnings.
- The company saw accelerated bookings growth in its consumer business for the second consecutive quarter.
- The company's advertising and B2B businesses continue to deliver strong double-digit growth.
Worse than expected
8 August 2024 5:40 PM
Quarterly Report
- Net income decreased in Q2 2024 compared to Q2 2023, indicating worse than expected profitability.
- The company incurred significant restructuring charges and legal reserves, negatively impacting the bottom line.
Worse than expected
8 August 2024 4:02 PM
Quarterly Report
- The company is adjusting its expectations for the rest of the year due to a softening in travel demand in July, indicating that future results may be worse than previously anticipated.
Worse than expected
2 May 2024 5:41 PM
Quarterly Report
- The company reported a net loss of $136 million, which is worse than expected given the revenue growth.
- The restructuring charges of $48 million negatively impacted the bottom line.
- The decline in ADRs is a concern and could impact future revenue growth.
Worse than expected
2 May 2024 4:02 PM
Quarterly Report
- The company lowered its full-year guidance due to the slower than expected recovery of Vrbo.
- Gross bookings were less robust than expected, despite revenue and earnings beating guidance.
Worse than expected
26 February 2024 5:00 PM
Current Report
- The company is incurring significant costs due to restructuring and is reducing its workforce, which is generally viewed negatively by investors.
Worse than expected
8 February 2024 5:40 PM
Annual Results
- The company recorded a goodwill impairment charge of $297 million related to the trivago segment.
- Intangible impairment charges of $129 million related to indefinite-lived trade names were recorded.
- Operating income decreased by 5% year-over-year.
Better than expected
8 February 2024 4:02 PM
Earnings Release and CEO Transition Announcement
- The company reported record full-year revenue and net income, exceeding previous results.
- Adjusted EBITDA and EPS also showed significant year-over-year growth.
- The company's B2B segment experienced substantial growth, indicating strong performance in that area.
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