Booking Holdings announced on Friday that it will make a variety of “organizational changes,” including job cuts. As of the end of 2023, Booking Holdings employed about 23,600 people, according to its annual report, which did not provide figures for Booking.com. The Connecticut-based company, among the largest in travel, didn’t provide specifics on the number of employees who would be affected or the financial impact of the reorganization.
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Booking Holdings, in a filing with the U.S. Securities and Exchange Commission on Friday, said it expected to provide more details on timing, likely impact on employees and financials from the reorganization “in due course”.
Booking workforce reduction
One of the issues for Booking layoffs is growth in operating expenses that has outpaced revenue growth. It is likely that Booking may try to reorganization and reset priorities in tech investments to stay competitive.
Among Booking’s tech priorities are its payments platform, fintech and generative AI.
Booking working on reorganization
In the company’s Q3 earnings call last month, CFO Ewout Steenbergen said: “We continue to be very focused on carefully managing the growth of our fixed expenses. We believe it is important to drive greater operating leverage in our fixed expenses as this creates capacity for disciplined investment across our strategic initiatives, which we believe will help drive stronger top line and earnings growth in the future.”
“We believe these efforts will improve operating expense efficiency, increase organizational agility, free up resources that can be reinvested into further improving our offering to both travelers and partners,” it said in the filing.
Booking Holdings added it would also modernize processes and systems and optimize procurement as part of the organizational changes.
Booking layoffs for cost cutting
The Booking Holdings announcement on Friday stated: “On November 8, 2024, Booking Holdings Inc. (the “Company”) announced its intention to implement certain organizational changes, including modernizing processes and systems, an expected workforce reduction, optimizing procurement, and seeking real estate savings.”
The financial filing continued: “We believe these efforts will improve operating expense efficiency, increase organizational agility, free up resources that can be reinvested into further improving our offering to both travelers and partners, and better position the Company for the long term.”
What will be affected?
As per company’s spokesperson, the review was specific to Booking.com and not its other brands, such as Priceline, Agoda, Kayak and OpenTable.
The changes come only days after Booking Holdings posted a 13.6% jump in operating expenses for the third quarter.
It was reported earlier this week that Booking has built back up its staffing since pandemic lows. The company has boosted its employee ranks to 24,200 as of September 30, 2024, up 19.2% from the end of 2021.
Booking on job cuts
Booking has to consult with works councils before determining precise workforce reductions as 47% of its staff was based in Europe as of the end of 2023.
“As part of a broader transformational program aimed at creating greater opportunities for innovation, improving efficiency and strengthening our long-term financial position, Booking.com is currently reviewing its organizational structure,” as per Booking’s spokesperson. “While we are still in the early stages of this process and no decisions have been made, we expect to make organizational changes. This is a proactive step to make sure Booking.com remains agile in a very competitive industry and keeps driving customer-centered innovation at pace.”
