Lastminute.com to Cut 25% of Workforce As AI Transformation Reshapes Operations

AI Strategy Drives Organizational Restructuring

European online travel company lastminute.com has unveiled a significant reorganization to position the business for what it calls the next phase of AI-driven growth in the travel sector.

The company said the restructuring will accelerate the adoption of artificial intelligence across core business processes while redesigning operations to improve efficiency and scalability. As part of the initiative, lastminute.com expects to reduce its workforce by approximately 25% across multiple countries where it operates.

Management indicated that the implementation process is expected to continue through the end of 2026. Once completed, the changes are projected to generate annualized cost savings of approximately €16 million beginning in 2027.

Investment Shifts Toward AI and Data Infrastructure

According to the company, savings generated by the restructuring will support increased investment in technologies and capabilities considered critical to future growth.

The strategy includes expanding the use of AI in customer-facing applications, strengthening the underlying data infrastructure that supports advanced AI systems, and building specialized cross-functional teams to develop and operate these technologies.

Executives believe the combination of lower operating costs and targeted technology investments will improve the company’s financial flexibility while creating opportunities for future expansion.

Travel Industry Faces Growing AI Disruption

The announcement reflects a broader trend across the travel industry, where artificial intelligence is increasingly influencing how travelers discover, research, book, and manage trips. Companies throughout the sector are exploring AI applications ranging from customer service automation and personalized recommendations to operational efficiency and revenue optimization.

lastminute.com said it views early adoption as essential to maintaining competitiveness as AI capabilities continue to evolve.

Chief Executive Officer Alessandro Petazzi said the company believes AI is fundamentally changing both customer behavior and the way travel businesses operate. He noted that management sees the restructuring as a necessary step to ensure the organization can compete effectively in an increasingly AI-driven marketplace.

Consultation Process Underway

The company stated that the workforce reductions will be implemented in accordance with local labor laws and consultation requirements in each affected country. Discussions with employee representatives are expected to continue throughout the process.

lastminute.com said it will provide additional updates on the progress of the restructuring and its broader AI strategy through its regular corporate reporting.

Industry Implications

The move highlights the growing impact of artificial intelligence on employment across the travel sector. While many travel companies have focused on AI as a tool to improve customer experiences and productivity, lastminute.com’s announcement is one of the more significant examples of workforce restructuring directly linked to large-scale AI adoption.

As travel companies seek greater efficiency and profitability, the balance between automation, technology investment, and workforce needs is likely to remain a key industry issue in the years ahead.