TUI is set to cut 8,000 jobs as it seeks to cut costs by 30%. The tour operator has blamed the current coronavirus pandemic for the cuts.
The travel giant said the staff reductions would be achieved via a freeze on recruitment and redundancies.
90% of its 53,000-plus global workforce are already either furloughed, working part-time, with reduced pay, or taking unpaid leave.
The Group said further cost cuts were necessary to quickly repay the €1.8 billion German government-backed loan received when it was forced to suspend its operations in March, and increased its credit facility.
CEO Fritz Joussen said: “To ensure that the strong operational performance can continue in a globally weakened market following the pandemic, the Group is now implementing a global program with extensive cost-cutting measures. This will further accelerate the transformation to a digital platform company that has already been initiated.
“TUI should emerge from the crisis stronger, but it will be a different TUI and it will find a different market environment than before the pandemic. This will require cuts: in investments, in costs, in our size and our presence around the world. We must be leaner than before, more efficient, faster and more digital.
“We will implement our ‘asset right’ strategy, which we launched in 2019, even more purposefully and quickly. We will become more digital at all levels – in particular, we will accelerate the expansion of digital platforms in new markets and for our activities in the destinations.
“We are targeting to permanently reduce our overhead cost base by 30 percent across the entire Group. This will have an impact on potentially 8,000 roles globally that will either not be recruited or reduced. In order to return to the successful development of the past years after the crisis, we must now implement the realignment quickly,” he added.
“Summer holidays in Europe can now gradually be made possible again – responsibly and with clear rules. Organised travel offers great advantages especially now: with the trusted TUI brand, we offer safety, local support and, in special situations, guarantee the return journey home.
“Together with the destinations and our partners we have developed extensive measures to protect our guests. The demand for holidays is still very high. People want to travel. Our integrated business model allows us to start travel activities as soon as this is possible again. The season starts later, but could last longer. For 2020 we will also reinvent the holiday: New destinations, changed travel seasons, new local offerings, more digitalisation.”
