Expedia Group Layoff 2026: What Employees Need to Do This Week

A layoff notice from Expedia Group starts five time-sensitive clocks that most employees don't know about. On September 22, 2026, Expedia Group disclosed plans to cut 58 or more employees from its Washington state operations, including roles at its Seattle headquarters. If you're one of them, the decisions you make in the next few days and weeks will have real financial consequences. This article walks through each one, in the order they arrive.

What happened

Expedia Group filed a Worker Adjustment and Retraining Notification (WARN) notice disclosing layoffs affecting 58 or more employees in Washington state. The cuts include roles at the company's Seattle headquarters. Expedia has been reducing headcount in multiple rounds over the past two years as it restructures its technology and corporate operations. Severance terms have not been publicly disclosed.

Should you file for unemployment right now?

Yes. File the same day your job ends, or the next business day at the latest. Washington unemployment benefits are not retroactive to your last day of work. Every day you wait is a day of lost benefits you can't get back.

Washington state's maximum weekly unemployment benefit is $1,019 as of 2026.¹ Your actual weekly benefit depends on your wages over the past year, but that's the ceiling. File at esd.wa.gov.

You'll need your Social Security number, your last employer's name and address, your start and end dates at Expedia, and your bank account details for direct deposit. Washington uses identity verification, so have a government-issued ID ready. If there's any delay in verifying your identity, call the Employment Security Department directly rather than waiting for the system to sort it out on its own.

Washington does have a one-week waiting period before benefits begin. You still need to file and certify for that week, even though you won't be paid for it. File immediately so you don't extend the wait.

What should you do about your severance agreement?

A severance agreement is a contract. In exchange for a payment, you're typically giving up your right to sue Expedia for certain claims. Read it before you sign it.

If you're 40 or older, federal law gives you time. The Older Workers Benefit Protection Act (OWBPA) requires that Expedia give you at least 21 days to review an individual severance offer. If this layoff is treated as a group termination program (two or more employees affected), that window expands to 45 days.² You also have 7 days after signing to revoke your acceptance. That right can't be waived.

Don't let anyone pressure you into signing on the first day. An HR representative telling you "we need this back quickly" doesn't override the law. If you're under 40, the OWBPA minimums don't apply, but that doesn't mean you should rush.

Things worth looking at in the agreement: how many weeks of pay are being offered, whether they're continuing your benefits during the severance period, any non-compete or non-disparagement clauses, and whether you're releasing claims under any specific statutes. An employment attorney can review an agreement for a flat fee in most cases. The cost is often worth it relative to what you might be giving up.

What should you do about health insurance?

Health insurance is a 60-day decision. Under federal COBRA rules, you have 60 days from your qualifying event date (your last day of employer coverage) or the date your COBRA election notice arrives, whichever is later, to elect continued coverage.³ COBRA coverage is retroactive to your last day of employer-provided insurance, which means you can wait and see whether you have major medical expenses before deciding.

The cost, though, is real. The average COBRA premium for individual coverage in 2026 is approximately $703 per month.⁴ That reflects the full cost of your plan (the portion Expedia was paying plus your share) plus a 2% administrative fee.

Your alternative is the Health Insurance Marketplace. Losing employer coverage is a qualifying life event that triggers a 60-day Special Enrollment Period.⁵ Depending on your projected income for the rest of 2026, you may qualify for premium tax credits that bring your Marketplace premium significantly below the COBRA cost. Washington's state exchange is at wahealthplanfinder.org.

Compare the two options before the window closes. If you have ongoing prescriptions or scheduled procedures, COBRA keeps you in your existing network with no interruption. If you're generally healthy and cost-sensitive, the Marketplace is likely cheaper. You don't have to decide today, but you do have to decide within 60 days.

What about your equity and stock options?

Expedia is a publicly traded company, so equity is a real consideration for many employees affected by this layoff. The rules differ depending on what type of equity you hold.

Incentive Stock Options (ISOs): Under IRC Section 422, ISOs must be exercised within 90 days of your termination date to retain their favorable ISO tax treatment.⁶ After that 90-day window, any unexercised options convert to non-qualified stock options (NQSOs), which are taxed differently and generally less favorably. Confirm your exact termination date now and count forward 90 days. That's your hard deadline.

One caution on ISOs: exercising them can trigger Alternative Minimum Tax (AMT) exposure depending on the spread between the exercise price and the market price on the date you exercise. If you're sitting on a large spread, talk to a tax professional before you exercise. The math can be significant.

Restricted Stock Units (RSUs): Unvested RSUs are typically forfeited on your last day of employment. Check your grant agreement and Expedia's equity plan documents for the exact language. Any RSUs that vested before your termination date are yours. For already-vested RSUs that were settled as shares, those shares are in your brokerage account and aren't affected by the termination.

Non-Qualified Stock Options (NQSOs): Review your grant agreements for the post-termination exercise period. This varies by plan, but it's often 90 days. Don't assume it matches the ISO window. Check the actual document.

What will happen with taxes on your severance?

Severance pay is ordinary income. The IRS treats it as supplemental wages and withholds at a flat 22% federal rate on the first $1 million paid in a calendar year.⁷ Washington has no state income tax, so you don't have a state withholding issue to worry about.

Here's the catch: 22% federal withholding may not be enough depending on your total income for 2026. If you had a full salary for most of the year before this layoff, your effective marginal rate could be higher than 22%. If Expedia underwithholds, you'll owe the difference when you file your 2026 return, and you might also owe a penalty for underpayment of estimated taxes.

The Q3 2026 estimated tax payment was due September 15, 2026.⁸ If your severance is being paid out after that date, the next checkpoint is the Q4 estimated payment, typically due January 15, 2027. If your total withholding for 2026 will fall short, consider making an estimated payment to cover the gap.

It's worth running the numbers now, not in April.

What should you do with your 401(k)?

When you leave Expedia, your 401(k) balance is yours. You have several options, and none of them are urgent in the same way unemployment filing is. But you do need to understand the rules before you do anything with the money.

Leave it where it is: Most plans allow former employees to keep their balance in the plan, at least temporarily. Check Expedia's plan documents for the rules. If your balance is above a certain threshold, they may not be able to force a distribution.

Roll it to an IRA: A direct rollover from your 401(k) to a traditional IRA is the cleanest move. Ask the plan administrator to transfer the funds directly to your IRA custodian. No taxes, no penalties, no complications.

Roll it to a new employer's plan: If you start a new job with a 401(k) plan that accepts rollovers, you can move the balance there. This keeps everything in one place.

Don't take an indirect rollover without understanding the rule: If the plan sends a check directly to you, they're required to withhold 20% for taxes. You then have 60 days to deposit the full original amount (including the withheld portion, out of your own pocket) into a qualified account to avoid taxes and penalties.⁹ If you miss that 60-day window, the distribution is taxable income, and if you're under 59 and a half, you'll also owe a 10% early withdrawal penalty. A direct rollover avoids all of this.

Also grab your post-layoff checklist to make sure you're not missing any steps in this process.

Deadlines and rules described here reflect federal law and general state guidelines as of the article date.

The Layoff Guide

The deadlines above apply whether or not you are tracking them. The Layoff Guide from Layoff HQ is a 33-page field guide that covers all twelve post-layoff deadline events in the order they arrive: unemployment, the severance review and revocation windows, COBRA and the Marketplace, your FSA, your equity window, your 401(k), and your taxes. Each event comes with timed checkpoints, the decision math, and the one mistake that costs people the most, plus a fill-in worksheet that turns your last day worked into your complete personal deadline calendar. One-time purchase. No subscription. Instant download, with a 14-day full refund if it is not useful.

Get The Layoff Guide, $39 or build your free Decision Calendar.

1. Washington Employment Security Department. "Calculate Your Benefit." esd.wa.gov.
2. U.S. Equal Employment Opportunity Commission. "Age Discrimination in Employment Act of 1967." eeoc.gov. (OWBPA provisions: 21-day individual review; 45-day group review; 7-day revocation right.)
3. U.S. Department of Labor, Employee Benefits Security Administration. "COBRA Continuation Coverage." dol.gov.
4. KFF. "Health Policy 101: Employer-Sponsored Health Insurance." kff.org. (Average individual COBRA premium 2026: $703/month.)
5. Healthcare.gov. "Special Enrollment Period." healthcare.gov. (Loss of employer coverage: 60-day SEP.)
6. IRS. "Publication 525: Taxable and Nontaxable Income." irs.gov. (IRC Section 422: ISO 90-day post-termination exercise window.)
7. IRS. "Publication 15: Employer's Tax Guide." irs.gov. (Federal supplemental wage withholding rate: 22%.)
8. IRS. "When to Pay Estimated Tax." irs.gov. (Q3 2026 due: September 15, 2026.)
9. IRS. "Rollover Chart." irs.gov. (60-day indirect rollover rule.)