Are Expedia’s Latest Job Cuts Linked to AI Transformation?
What happened?
A couple of weeks ago, Expedia Group launched another wave of layoffs, its third in under two years. The company did not reveal how many people are affected and said the purpose is to remove extra management layers and build a structure that supports quicker decisions.
Flatter organizations are usually meant to help big companies respond faster to shifts in market conditions, customer behavior, and technology trends. While this was not specified, staff reductions tied to efficiency and tech changes are often associated with AI nowadays, which gave a reason for speculations in Expedia’s case.
Is Expedia replacing employees with AI?
The company has not said that directly. It’s the timing that raises questions—the layoffs came less than two months after Expedia named its first chief AI and data science officer, Xavier Amatriain, who previously held a senior AI leadership position at Google as VP of AI and compute enablement.
With Amatriain in this role, the company said it would expand AI use across its main brands, including Expedia, Hotels.com, and Vrbo.
With no further updates from the company, it remains unclear whether the timing is purely accidental.
Are there travel companies that explicitly linked AI to layoffs?
Yes.
In September 2025, Lufthansa Group said it plans to cut 4,000 administrative jobs worldwide by 2030 as part of a wider effort to boost efficiency using AI.
The group explained that overlapping processes and the growing use of AI-based automation will make some tasks unnecessary, helping streamline operations and lower costs over the next five years.
In another case, United Airlines shared in October 2025 that it reduced about 4 percent of management roles at its headquarters, naming expanded AI use as the main driver. The company said AI tools have raised efficiency in administrative and support functions, decreasing the need for certain management positions.
United also mentioned that more layoffs may happen in 2026 as AI systems spread into additional areas such as finance, planning, and revenue management.
Does AI adoption inevitably lead to job cuts in the industry?
Of course not.
Typically, AI is introduced to improve internal efficiency while employees are provided with training.
For example, in November 2025, Emirates partnered with OpenAI to broaden and deepen AI use across the company. Under this deal, Emirates provides ChatGPT Enterprise to employees across the company, while launching large-scale training programs.
The goal is to improve productivity and raise customer service standards—all while embedding AI into everyday workflows and without cutting jobs. Instead, staff get role-specific training and continuous support from leadership to make AI a core part of Emirates’ workplace culture.
On the other hand, even if AI initiatives are specifically intended to cut costs, it still doesn’t necessarily lead to laying off employees. For example, in late 2025, TUI Group introduced a cost-optimization plan built largely on AI-driven improvements. Instead of layoffs, CEO Sebastian Ebel said TUI will cut back on external contractors and limit the number of roles required in the future.
Overall, a few examples from the past year is not enough to conclude that AI is widely replacing people across travel businesses.
Photo by Brusk Dede on Unsplash