Expedia has said it will dismiss around 3,000 members of staff, including 500 at its headquarters in Seattle.
The move comes after a change of leadership following the departure of chief executive Mark Okerstrom in December.
Resuming control of strategy shareholder Barry Diller said the company has become “sclerotic and bloated”.
“We are stopping doing dumb things and start doing what we think are good things,” Diller added.
The company said in an email to staff that it will “reduce and eliminate certain projects, activities, teams, and roles to streamline and focus our organisation”.
The cuts represent around 12 per cent of the Expedia workforce.
Expedia and its rivals are already battling against a move by Google into the sector and the recent impact of the coronavirus outbreak.
The company said that it expected the shutdown from the virus to cost it $30-$40 million in lost earnings.
Shares in Expedia fell around three per cent following release of the news.