Booking Holdings, the global giant in the online travel industry, has announced that it will be undergoing another round of layoffs in 2025. While these job cuts will be significant, they are expected to be far less drastic than the 23% workforce reduction that the company implemented during the pandemic in 2020. This reorganization comes as part of the company’s broader strategy to streamline its operations and drive efficiency, and it will have a noticeable impact on its workforce.
According to a financial filing released by the company this week, Booking Holdings expects to achieve annual savings of between $400 million and $450 million as a result of the reorganization. One-third of these savings will come from workforce reductions. This means that, if the ratio of layoffs to cost savings is similar to that of 2020, between 8-10% of the company’s employees could be affected in the coming year. However, various factors may alter this estimate, and the final numbers could differ.
In 2020, the company faced an unprecedented crisis as the global travel industry came to a standstill due to the COVID-19 pandemic. To cope with the plummeting demand for travel services, Booking Holdings made a dramatic decision to cut 23% of its workforce. This decision was part of a broader effort to reduce costs amid shrinking revenues. The company’s layoffs at that time resulted in savings of about $370 million annually.
The 2025 layoffs, in contrast, are expected to save between $133 million and $150 million, a notable decrease from the earlier figure. While this reduction is still substantial and will certainly have a painful impact on employees who lose their jobs, the magnitude of these upcoming layoffs will be far less severe compared to the pandemic-driven cuts. The company’s financial situation has improved since then, as travel demand has rebounded, but Booking is still taking steps to manage its cost structure more effectively.
The upcoming reorganization is part of a broader strategy to ensure that Booking Holdings can maintain its long-term growth. One of the main goals of this effort is to slow the growth of fixed expenses such as personnel costs, IT, and administrative expenses relative to revenue. The company is focused on improving operational efficiency across various areas, including modernizing processes and systems, optimizing procurement, and reducing its real estate footprint.
In addition to these cost-saving measures, Booking Holdings is also shifting its priorities to invest in key areas like artificial intelligence (AI) to remain competitive in the future. This reorganization seems to be part of an effort to position the company for sustainable growth, particularly by reinvesting into technologies that could drive innovation and enhance customer experiences.
The company’s B2B services, which compete with Expedia Group and other travel giants, are also seeing some changes. Booking Holdings recently laid off 60 employees in its B2B division, which provides white-label solutions for banks, airlines, and hotels. This adjustment is part of the company’s broader shift in focus as it reorders its priorities, potentially downgrading certain aspects of its B2B operations in favor of bolstering its consumer-facing brands like Booking.com, Kayak, and OpenTable.
Although the layoffs are painful, they reflect a strategic pivot that Booking Holdings is making to stay competitive in an ever-changing industry. The company is not just focused on cutting costs but is also investing in future opportunities to ensure its continued relevance in the travel space. As the company navigates these changes, employees, customers, and investors alike will be watching closely to see how this reorganization shapes the company’s future trajectory.
In conclusion, while the layoffs at Booking Holdings in 2025 will be substantial, they are expected to be less severe than the cuts made in 2020. The company’s focus on optimizing its operations, investing in new technologies, and managing expenses more efficiently suggests that it is positioning itself for long-term success, even as it navigates these difficult decisions.
