Expedia Announces Workforce Reduction Amid AI-Driven Restructuring
SEATTLE – Expedia Group has filed a Worker Adjustment and Retraining Notification (WARN) with Washington state officials, confirming plans to eliminate 162 positions at its Seattle headquarters and among some remote employees. The layoffs, scheduled between April 1 and April 19, 2026, represent the latest workforce reduction for the online travel giant as it aggressively pursues artificial intelligence integration to stay competitive.
The move comes despite Expedia reporting stronger-than-expected third-quarter earnings in November 2025, with revenue reaching $4.4 billion—a 9% year-over-year increase—and booked room nights growing 11%. The company attributed this performance to "the fastest U.S. growth in three years and continued international strength."
According to the filing with Washington's Employment Security Department, the affected roles span multiple levels of the organization, including software engineers, product managers, data specialists, and even some senior leadership positions. None of the impacted roles were union-represented, with the company noting some eliminations resulted from "the relocation or contracting out of Expedia's operations."
This marks Expedia's third significant workforce reduction in two years. In February 2024, the company cut approximately 1,500 positions following the unification of its Expedia, Hotels.com, and Vrbo brands—a restructuring that incurred $80-$100 million in pre-tax charges. Another round affecting about 3% of its workforce followed in 2025, as reported by industry publication Skift.
Industry Context: The travel technology sector is undergoing rapid transformation as companies race to implement AI-driven experiences. Booking Holdings uses AI for trip planning and review summaries, while Airbnb has expanded beyond accommodations to offer curated experiences. Google's recent launch of its AI travel tool Canvas—which integrates Maps data, reviews, and flight deals—has particularly intensified pressure on traditional players.
Despite the reductions, Expedia continues to hire in strategic areas. The company currently lists 95 open U.S. roles and 179 global technology positions focused on AI experience, data analytics, and machine learning foundations, signaling a clear pivot toward AI-capable talent.
The market has responded positively to Expedia's strategic direction, with shares rising 24% this quarter and 59% over the past year. However, the human cost of this technological transition continues to unfold across the tech sector, with LinkedIn profiles marked "Open to Work" becoming an increasingly common sight.
Expert Commentary:
"This is another painful but predictable step in Expedia's multi-year transformation," says Marcus Chen, a technology industry analyst at Northwest Advisory Partners. "They're shedding legacy roles while aggressively competing for AI talent. The stock performance suggests investors approve of this harsh arithmetic."
"As a former Expedia product manager laid off last year, I'm heartbroken but not surprised," shares Priya Sharma, now a travel tech consultant. "The company keeps talking about 'recalibrating resources,' but these are people with families and mortgages. Each 'transformation' feels like abandoning the very teams that built their success."
"The AI arms race in travel is accelerating, and consolidation is inevitable," observes David Rosenberg, professor of business strategy at University of Washington. "Expedia's challenge is balancing technological investment with organizational stability. Their hiring in AI domains while cutting elsewhere shows where they believe the future lies."
"It's corporate cannibalism disguised as innovation," argues Alex Rivera, a software engineer and tech labor advocate. "Record profits, soaring stock prices, yet they're still firing people. They're not 'restructuring'—they're exploiting the AI hype to cut costs and please shareholders. When do the promised AI benefits actually reach workers or customers?"
This story updates reporting originally published by TheStreet. Additional context and analysis have been added.