SEATTLE — Expedia's CEO Mark Okerstrom and CFO Alan Pickerill resigned, Expedia Group, Inc. announced Wednesday.
Barry Diller, chair of the Board and Peter Kern, vice chair and director of Expedia, will oversee the company's leadership team and manage day-to-day operations while the Board determines long-term leadership of the company.
"Ultimately, senior management and the Board disagreed on strategy, Diller said in a statement. "Earlier this year, Expedia embarked on an ambitious reorganization plan with the goal of bringing our brands and technology together in a more efficient way. This reorganization, while sound in concept, resulted in a material loss of focus on our current operations, leading to disappointing third quarter results and a lackluster near-term outlook. The Board disagreed with that outlook, as well as the departing leadership's vision for growth, strongly believing the Company can accelerate growth in 2020. That divergence necessitated a change in management. Mark Okerstrom is a talented executive and his 13 years of service to Expedia has greatly benefited the enterprise. The Board and I wish him the best for the future, as we do for Alan Pickerill."
Okerstrom also leaves his seat on the Board.
Diller says he will purchase more shares of the company as a "tangible sign of my faith" in the future of Expedia.
"While we share and understand the investment community's unhappiness with our third quarter results and how 2019 has shaped up overall, we are keenly focused on the future and all of the opportunities ahead of us," Kern said in a statement. "We believe there is significant opportunity for Expedia to grow revenue and margins in what is a still a very dynamic online travel industry. The Company has an exceptionally strong and deep executive leadership team in place. Barry and I, as well as the entire Board, look forward to working closely with them in the period ahead, as well as over the long-term. Additionally, we intend to use our strong balance sheet to continue and amplify our stock repurchase program, given our belief that the market currently undervalues our company."
Expedia's Chief Strategy Officer Eric Hart will serve as CFO.
Ariane Gorin was promoted and will serve as president of Expedia Business Services.