ONLINE travel giant Expedia will cut 3,000 jobs worldwide after what the company called a “disappointing” performance last year, US media reported yesterday.

The firm, which operates its flagship travel site as well as Hotels.com, Hotwire, Travelocity, Cheaptickets, Egencia and CarRentals.com, said the decision was made after determining it has been “pursuing growth in an unhealthy and undisciplined way”, according to an email sent to staff.

“I am confident that (by) simplifying our business and clarifying our focus by making these difficult changes, our teams can get back to working on the projects and priorities that make the most sense for us, our customers and our partners,” said Expedia chairman Barry Diller in a statement to The Seattle Times.

During a February 13 earnings call, he called the organisation “bloated” and said many employees did not know what “they were supposed to do during the day”.

He also said he is aiming for savings of US$300 million to US$500 million (RM1.3 billion to RM2.1 billion) this year.

Over the course of 2019, sales increased by 8%, net income (4%) and earnings per share (6%).

By the end of December, the company had 25,400 employees around the globe. The job cuts will eliminate about 12% of the workforce.

But, the company leadership revealed that in the last quarter, net profit went down 4% and earnings per share (1%).

In early December, Expedia announced the immediate departure of chief executive Mark Okserstrom and chief financial officer Alan Pickerill after what the company termed “disappointing” third-quarter results. – AFP, February 25, 2020.