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Orbitz Acquired by Expedia: Expect Job Cuts

9/20/2015

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Photo credit: Secondarywaltz via Wikimedia Commons

Travel company Expedia, an online tool for renting cars, making hotel reservations, and finding entertainment during travel, has acquired a competitor, Orbitz, another travel-planning website.
In press releases on September 17, both companies announced that Orbitz stock is no longer being traded, with both companies stating that Expedia "delivers consumers value..."
According to the Chicago Tribune, "Expedia and Priceline control more than 95 percent of the online travel agency bookings in the United States." In spite of the hotel industry speaking out against this acquisition - voicing concerns that it could create a duopoly, along with other concerns about scams and deceptive bookings - the Justice Department ruled that the merger could be completed after concerns emerged that it would harm competition and increase fees for its customers.
Press releases from both Expedia and Orbitz contained "forward-looking statements" in regards to the merger. Similar language was used during the transition period of the now Kraft Heinz company. It is now known that Kraft Heinz is in the process of planning layoffs for its employees.
Could this be next for those employed by Orbitz or Expedia? According to the Chicago Tribune, "duplicate positions will be eliminated". A specific number of staff to be displaced is not yet known.

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