This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-52644291
The article has changed 7 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Tui warns of 8,000 job losses as it cuts costs | Tui warns of 8,000 job losses as it cuts costs |
| (32 minutes later) | |
| Travel firm Tui has warned that up to 8,000 jobs will go as it seeks to cut costs by 30% because of the coronavirus pandemic. | Travel firm Tui has warned that up to 8,000 jobs will go as it seeks to cut costs by 30% because of the coronavirus pandemic. |
| The firm said its turnover and earnings would be significantly lower in the current financial year, with cost savings only partly compensating for the slump. | The firm said its turnover and earnings would be significantly lower in the current financial year, with cost savings only partly compensating for the slump. |
| Tui has been bolstered by a €1.8bn (£1.6bn) state-backed loan in Germany. | |
| It was forced to cancel the majority of its travel programme in March. | |
| Travel restrictions across Europe and further afield mean that the crucial summer season is still in doubt, leaving millions of holidaymakers unsure of their plans. | |
| In the UK, the Foreign Office is still advising against all non-essential foreign travel, with no indication of when the policy might change. | |
| On Tuesday, Health Secretary Matt Hancock said it was unlikely that "big, lavish international holidays" were going to be possible this summer. | |
| "We are targeting to permanently reduce our overhead cost base by 30% across the entire group. This will have an impact on potentially 8,000 roles globally that will either not be recruited or reduced," Tui said in a statement. | "We are targeting to permanently reduce our overhead cost base by 30% across the entire group. This will have an impact on potentially 8,000 roles globally that will either not be recruited or reduced," Tui said in a statement. |
| Tui normally employs 70,000 people during the summer holiday season and 60,000 in quieter months. | Tui normally employs 70,000 people during the summer holiday season and 60,000 in quieter months. |
| It said its restructuring would affect its airline business and would also involve selling off "non-profitable activities". | It said its restructuring would affect its airline business and would also involve selling off "non-profitable activities". |
| Tui added that it was ready to resume providing holidays this year, using new social distancing and cleaning measures. | |
| "The demand for holidays is still very high. People want to travel," said chief executive Fritz Joussen. |