Lastminute.com will cut roughly 25% of its workforce as it restructures operations around artificial intelligence, a move expected to deliver €16 million in annual cost savings starting in 2027. The European online travel company is redirecting those savings into AI systems, data infrastructure, and specialized technology teams, making it one of the clearest examples yet of headcount reduction tied directly to large-scale AI adoption in the sector.
The restructuring will unfold across multiple countries through the end of 2026. Chief Executive Officer Alessandro Petazzi said AI is fundamentally changing both customer behavior and how travel businesses operate. "Management sees the restructuring as a necessary step to ensure the organization can compete effectively in an increasingly AI-driven marketplace," he added.
Where the investment is shifting
The company plans to expand AI use in customer-facing applications while strengthening the data infrastructure that supports those systems. Savings will also fund specialized cross-functional teams built to develop and operate AI technologies. Executives expect the combination of lower operating costs and focused technology investment to improve financial flexibility and create room for future expansion.
These changes mirror a wider industry pattern. Travel companies are applying AI across customer service automation, personalized recommendations, and operational efficiency work. Lastminute.com framed early adoption as essential to staying competitive as AI capabilities evolve.
How the workforce changes will be handled
The company said reductions will follow local labor laws and consultation requirements in each affected country. Discussions with employee representatives are underway and expected to continue through the implementation period. Progress updates will appear in regular corporate reporting.
While many travel firms have treated AI primarily as a tool for customer experience and productivity gains, lastminute.com's announcement stands out for directly linking workforce restructuring to AI adoption at scale. The balance between automation, technology investment, and staffing needs is becoming a central tension for the industry.
Why this matters for operations professionals
This restructuring puts hard numbers behind what operations teams have been discussing for years: AI adoption is no longer just a productivity play - it's reshaping headcount and org structure. The €16 million annual savings target and the 2027 timeline give operations leaders a concrete benchmark for what AI-driven efficiency programs can deliver. More importantly, the shift of savings into data infrastructure and specialized teams signals that cost reduction alone isn't the endgame. For operations professionals, the takeaway is that AI strategy and workforce planning are now a single conversation. Companies that treat them separately will find themselves making reactive cuts rather than building the infrastructure that makes automation sustainable.
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