Expedia starts global lay-offs this week in Hong Kong and Singapore, as ‘bloated’ agency slims down amid travel slump
- Some staffers in Hong Kong and Singapore received notices this week, leaving after signing agreements
- More lay-offs could come in the two offices and possibly other branches in Asia
Expedia Group has kicked off its global lay-off of 3,000 staff this week in Asia, part of the plan by one of the world’s largest online travel agencies to trim a workforce described by its chairman as “bloated,” as a global coronavirus outbreak crimps travelling.
The first dismissals will take place in Hong Kong and Singapore, where staff will receive redundancy notices as early as this week, according to a person familiar with the matter. The Seattle-based company has 106 employees on staff in Hong Kong, with another 343 in Singapore, according to LinkedIn.
The lay-offs are part of the 3,000 redundancies unveiled on Tuesday, as the 18-year-old company stops certain projects, trims its headcount by 12 per cent and reduces its use of vendors following a disappointing business performance last year. The company, which ousted chief executive officer Mark Okerstrom and chief financial officer Alan Pickerill in December amid a boardroom clash, had 25,400 staff on payroll as of December 31.
“This estimate is subject to consultation in countries where that would apply,” the Seattle-based company said in an overnight statement, confirming its layoffs.
Infographics: All you need to know about the global coronavirus outbreak
Many companies in the travel industry “will be under pressure to start reducing headcount” to cut costs, said Guotai Junan’s hotel and gaming analyst Noah Hudson, who expects the coronavirus outbreak to extend past the first quarter. “A large proportion of expenses are operating costs which are still ongoing; they can cut it to some extent, but they can’t completely eliminate it.”
The coronavirus, which can be traced to the Hubei provincial capital of Wuhan in China, has now been reported in 48 regions and countries worldwide, including a cruise ship moored in Yokohama with almost 700 afflicted passengers. More than 95 per cent of the confirmed cases were confined to mainland China, but the virus’ spread as far afield as Brazil, Sweden and the United States – the first coronavirus case of unknown origin was reported yesterday in California – has spooked business and leisure travellers.