A surprise agreement between online travel agency Travelocity and its larger rival Expedia doesn’t appear to be good for Travelocity’s IT staff.
As part of the August 2013 deal between the online travel giants, Travelocity will cede development, content sourcing and customer service functions to Expedia. Meanwhile, Expedia will pay Travelocity a performance-based fee for its sales.
According to a notice filed with the Texas Workforce Commission, Travelocity will soon begin a reduction of workforce at its Southlake, Texas, global headquarters
Fourteen employees will be laid off by November 15. While that’s a sliver of the company’s 3,000 workers, additional layoffs will take place over the next few months. The deal is likely to only affect Travelocity’s U.S. and Canadian operations. Travelocity spokesman Joel Frey says the downsizing is in anticipation of the Expedia deal’s full implementation in 2014.
“Expedia will help us with technology, supply and customer service,” Frey told the Los Angeles Times. He characterized Travelocity as being better at marketing than technology.