Expedia Group Inc. said late Monday it expects to lay off about 1,500 employees as it works to “recalibrate resources.”
Expedia
EXPE,
said the employees affected started getting notified on Monday. The online travel company, which also owns brands such as VRBO and Hotels.com, said that it was committed to “restructuring actions” that resulted in the layoffs, in a filing with U.S. securities regulators.
All pre-tax charges and costs associated with the restructuring are expected to be recorded this year, to the tune of $80 million to $100 million, and are mostly employee severance and compensation benefits costs, the company said.
See also: Expedia’s stock punished as analysts warn of ‘more uncertainty’
Shares of Expedia were flat in the after-hours session Monday after ending the regular trading day down 1%. In an earlier filing, Expedia said it had 17,100 employees globally.
Expedia earlier this month reported better-than-expected quarterly earnings, but it surprised Wall Street by announcing a CEO change. Expedia’s stock is down 11% so far this year, contrasting with a 6.3% gain for the S&P 500 index
SPX.
It nearly matches the broader index’s performance on a 12-month basis, however, up 29% to the S&P’s 28% advance.