Expedia laying off 3,000 employees, 500 in Seattle citing ‘undisciplined’ growth
Expedia announced Monday that it would be laying off almost 3,000 employees, including 500 from its brand new Seattle headquarters.
In an internal email to employees first reported by Geekwire, the company detailed how it has been “pursuing growth in an unhealthy and undisciplined way.”
“Moving forward, we will exert more discipline in setting priorities and allocating resources, simplify our business processes and inter-dependencies, raise the bar on performance standards, and demonstrate and demand accountability for results,” the email reads.
Chairman Barry Diller — who took over day-to-day operations last December — had also described Expedia as a “bloated organization” in a recent earnings call.
These layoffs — totaling 12 percent of Expedia’s employees — come as part of what Geekwire says will be $300 to $500 million of annual cost savings across the company. Expedia reported $12 billion in revenue in 2019, turning a $565 million profit. Revenue in 2019 was up 8 percent over the previous year, with the company employing 25,400 people over that period.
Expedia opened its new Seattle campus last October, with 4,500 employees initially slated to occupy the space. The campus was also built with room for an additional 1,800 people, and the company had reportedly hoped to double its local staff by 2031.
According to public financial statements, the 40-acre campus cost roughly $900 million to build, including playing fields, an amphitheater, and a full-service cafe. Expedia acquired the former Amgen campus on the shores of Elliott Bay for $228.9 million.