Expedia Announces Layoffs Amid Strategic Restructuring Despite Strong Financial Performance
Expedia Group, one of Seattle’s largest tech employers, has initiated another round of layoffs affecting employees across multiple locations and departments. The travel giant confirmed that program managers and engineers in the Seattle region and beyond are among those impacted, with approximately one-fifth of the product team being cut. In an official statement, an Expedia spokesperson explained the company’s approach: “We are eliminating roles as well as opening some new roles as we remain disciplined about assessing the skills we need for the future. We are also simplifying our structure and reducing organizational layers to move faster and with more accountability.” The spokesperson acknowledged the difficulty of these decisions and expressed gratitude for the contributions of affected employees. This marks a continuation of Expedia’s workforce restructuring that has been ongoing for the past two years.
The company’s decision to reduce staff comes despite recent financial success. In its third quarter report, Expedia posted impressive numbers with a 9% revenue growth reaching $4.4 billion, while adjusted net income grew 19% year-over-year. Gross bookings increased by 12% to $30.7 billion, leading the company to raise its full-year guidance. CEO Ariane Gorin highlighted “an improved demand environment, disciplined execution and tangible progress on our strategic priorities” in the earnings release. The stock has performed exceptionally well, rising more than 40% over the past six months with the company’s market capitalization exceeding $33 billion. This apparent contradiction between strong financial performance and workforce reductions raises questions about the company’s long-term strategy and priorities.
Behind these layoffs appears to be a significant technological transformation driven by artificial intelligence. During an earnings call with analysts, CEO Gorin described AI as a “step function” opportunity to enhance team efficiency and effectiveness. “We’re already seeing the benefits in our product, technology, and customer service teams — from enhancing developer productivity to improving resolution speed on servicing, to highlight just a couple of examples,” she explained. This suggests that while Expedia is reducing its workforce in certain areas, it may be reallocating resources toward AI-driven initiatives and hiring for roles that align with this technological direction. The company seems to be positioning itself for a future where AI plays a central role in its operations, potentially requiring fewer human employees for certain functions while creating demand for new specialized skills.
The latest reductions continue a pattern that has been developing at Expedia over the past couple of years. The company went through another round of layoffs last year that reportedly affected about 3% of its workforce, and had separate layoffs earlier in 2025 as well. According to its most recent annual filing, Expedia employed approximately 16,500 people across nearly 50 countries at the end of 2024. The company has not disclosed the exact number of employees affected by the current round of cuts, but impacted workers have been sharing their experiences online, providing some visibility into the scope and nature of the reductions. The repeated rounds of layoffs suggest an ongoing reassessment of workforce needs and organizational structure rather than a one-time adjustment.
Expedia Group encompasses a diverse portfolio of travel brands beyond its flagship Expedia.com, including Vrbo, Orbitz, Hotwire, Trivago, and Hotels.com. Its significant presence in Seattle’s Interbay neighborhood makes it one of the region’s major tech employers alongside companies like Amazon, which is reportedly also preparing for another round of corporate layoffs this week. This pattern of workforce reductions among Seattle’s tech giants points to broader industry trends as companies adjust to changing market conditions, technological advancements, and shifting strategic priorities. For the Seattle region, these simultaneous layoffs could have meaningful economic impacts, affecting local employment rates and the commercial real estate market.
As Expedia prepares to report its fourth quarter earnings on February 12, investors and industry observers will be watching closely for indications of how these organizational changes align with the company’s financial performance and future outlook. The apparent contradiction between strong financial results and continued workforce reductions suggests that Expedia is undergoing a fundamental transformation in how it operates. By simplifying its structure and reducing organizational layers, the company aims to increase speed and accountability – a common theme among tech companies seeking to remain agile in a rapidly evolving marketplace. For employees, however, this creates a challenging environment of uncertainty, even as the company continues to post strong results. The human impact of these decisions extends beyond those directly affected, influencing company culture and employee morale across the organization.
