This travel company is now making massive job cuts as it seeks to lay off a whopping 1,500 employees in its latest restructuring.
Online travel platform Expedia said on Monday it was cutting about 1,500 jobs as part of its latest restructuring.
As of December 31, 2023, the company had 17,100 employees in more than 50 countries.
Total pre-tax charges and cash expenditures associated with the restructuring actions are expected to be between $80 million and $100 million, Expedia said.
Shares of the company were up marginally in aftermarket trading.
The cuts, which amount to nearly 9% of its 17,100-strong global workforce, come amid slowing travel demand following a post-pandemic boom and a broader shakeup at the company, including a new CEO, reports CNN.
“Given the recent completion of many significant technical milestones in Expedia Group’s transformation, the business continues to evaluate the appropriate allocation of resources to ensure the most important work continues to be prioritized,” a company spokesperson said in a statement to the outlet.
Expedia said in a regulatory filing that the cuts will result in an $80 million to $100 million charge to its bottom line because of severance and compensation benefits costs.
Over time, Expedia has acquired several online traveling booking platforms including Hotels.com, Vrbo, Orbitz, Hotwire.com and Travelocity.
Specific details of where the layoffs will occur wasn’t revealed.
An Expedia spokesperson said that the changes “will result in the elimination of some roles” that “allows the company to invest in core strategic areas for growth.”
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Also Read: This Massive Restaurant Is Now Closing 41 Locations
Other Economy News Today
A big appliance company now files an unexpected bankruptcy after racking up a whopping $832 million in debt, sources report.
Appliance component manufacturer Robertshaw U.S. Holdings filed for Chapter 11 bankruptcy protection on Thursday, seeking to cut $670 million in debt and resolve litigation between its lenders, reports Reuters.
Robertshaw manufactures more than 10,000 sophisticated controls for commercial and home appliances, per its website.
Primary applications include controls for clothes washers and dryers, dishwashers, refrigerators, electric and gas cooking, ice makers, fluid dispensing, storage water heaters, gas valves for space/central heating, and automotive/off road temperature and fluid controls.
The company, owned by private equity firm One Rock Capital Partners, entered bankruptcy with a restructuring agreement supported by a majority of its lenders, according to documents filed in Houston, Texas bankruptcy court.
The company will also explore a bankruptcy sale as an alternative to its debt restructuring.
“Robertshaw may not be a household name, but its products appear in almost every household,” attorney George Klidonas said at a Thursday court hearing in Houston.
The company blames the pandemic for its struggles.
Robertshaw said it was unable to sustain its high debt level in the face of rising interest rates and lingering supply chain challenges that arose during the COVID-19 pandemic.
The Itasca, Illinois-based company said it has $832 million in debt.
In the last nine months of 2023, Robertshaw generated a gross profit of $58.8 million.
The company’s efforts to address its debt outside of bankruptcy spurred litigation between its lenders in 2023.
Robertshaw will seek to resolve that dispute in bankruptcy, either through mediation or litigation in bankruptcy court, according to court documents.
The company has lined up a $56 million bankruptcy loan funded by its majority lender group, according to court filings, and will seek bankruptcy court approval for that loan at a later date.
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
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