Expedia (EXPE) Plans Headcount Reductions at Orbitz

Expedia (NASDAQ: EXPE) disclosed the following on Wednesday:

On November 2, 2015, Expedia, Inc. (“Expedia”) committed to restructuring actions intended to optimize cost and expense synergies from the previously disclosed acquisition of Orbitz Worldwide, Inc. (“Orbitz”). The restructuring actions are expected to result in headcount reductions at Orbitz and the communication of such actions to affected employees was substantially completed on November 12, 2015.

In connection with these actions, the Company expects to record approximately $130 million to $150 million in total pre-tax charges relating primarily to employee severance and compensation benefits, including stock-based compensation, of which $90 million to $110 million is expected to result in cash expenditures. The total pre-tax charges include approximately $70 million incurred in the third quarter of 2015 approximately $20 million to $30 million expected to be incurred in the fourth quarter of 2015 and approximately $40 million to $50 million expected to be incurred in 2016.

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