Online travel giant Expedia (EXPE: NSD) announced today that it will be reducing its global workforce by approximately 1,500 employees, representing roughly 9% of its total staff. This move comes as part of the company’s broader “organizational and technological transformation” plan.
Stock Target Advisor’s Take on Expedia:
Stock Target Advisor rates EXPE as a “Hold”. Moreover, it sets the target price $139.86, anticipating a price change of 3.64% in the next 12 months. A broad analysis of average analyst target prices, however, sets the figure higher, at $153.44 with a consensus rating of “Buy”.
Out of a total of 16 covering analysts, the average rating given to EXPE is a “Buy”, with target prices ranging from $114 to $200. In comparison, the Travel Services sector in the NSD exchange’s average rating is “Strong Buy” although Stock Target Advisor rates the sector as slightly bearish.
Expedia Group’s Bold Move for Future Growth:
Expedia Group Inc. has recently announced a significant reduction in its global workforce due to the forecasted waning travel demand until 2024. This cut will comprise 1,500 jobs, which accounts for a notable 9% of its total staff.
Additionally, the resignation of CEO Peter Kern is seen as another indication of significant change within the company. It’s important to note that Expedia Group has expressed a commitment to supporting its impacted employees throughout this transition period. These decisions reflect broader adjustments being made across the travel industry in response to the ongoing pandemic and economic uncertainty.
Conclusion:
The company has not yet disclosed specific details regarding which departments or regions will be most affected by the layoffs. However, Expedia assures it is committed to supporting impacted employees during this transition.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
