Expedia Slashes ~9% Workforce, To Incur Up To $100M In Restructuring Costs
Portfolio Pulse from Lekha Gupta
Expedia Group, Inc. (NASDAQ:EXPE) announced a workforce reduction of approximately 9%, affecting around 1,500 employees, as part of its organizational and technological transformation. The company anticipates incurring $80 million to $100 million in pre-tax charges and cash expenditures related to restructuring, with charges to be recorded in 2024. This announcement follows Expedia's recent earnings beat and the appointment of Ariane Gorin as the new CEO, effective May 13, 2024. EXPE shares rose 1.37% to $136.80.
February 27, 2024 | 4:25 pm
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Expedia Group, Inc. is reducing its workforce by about 9%, incurring restructuring costs of $80M-$100M, following an earnings beat and CEO change. Shares rose 1.37% to $136.80.
The workforce reduction and restructuring costs indicate significant organizational changes, which could have mixed short-term impacts on the stock. The recent earnings beat and positive price action suggest investor confidence, but the costs associated with restructuring could temper this optimism. The appointment of a new CEO adds a layer of uncertainty, as leadership changes can influence company strategy and investor sentiment.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100