TUI could cut 8,000 jobs - here’s everything you need to know
Travel company TUI has announced possible plans to axe 8,000 jobs, as it seeks to cut costs during the coronavirus pandemic.
TUI has also revealed plans for a major restructuring, in a bid to decrease its costs by up to 30 per cent.
Jobs to ‘not be recruited or reduced’
TUI usually employs 70,000 people throughout the peak summer holiday months, and 60,000 in quieter seasons.
As the virus spread through the country, the company had to cancel the majority of its travel programmes in March 2020, and most of its holidays have now been called off until June 2020.
"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," the company said in a statement.
TUI has said that part of its restructuring would include selling all of its "non-profitable activities" and shall also affect its airline business.
In the first three months of 2020, the travel company lost €740m (£650m). It has since received a german state bail-out of €1.8bn (£1.6bn).
When can I go on holiday with TUI?
There are currently still several travel bans across the world preventing travel for leisure.
Also, the UK Foreign Office continues to advise against all forms of non-essential foreign travel, and there has yet to be any indication of when the government’s policy could change.
While Health Secretary, Matt Hancock, has said that "big, lavish international holidays" were not likely going to happen this summer, TUI announced that "in the coming days” selected hotels in Germany as well as other operations in some of its European destinations will begin to welcome holidaymakers.
TUI has said it is ready to resume providing holidays this year, with the use of new cleaning and social distancing measures.
In a statement regarding new safety measures, the company said, "The health and well-being of both customers and colleagues remain paramount and we are assessing how we can responsibly adapt to measures so that leisure travel can resume.
"We are preparing new procedures for the airport process, on board our aircraft, in hotels and on our ships, so that any social distancing recommendations or guidelines can be implemented, without compromising customer enjoyment and travel experience."
In addition to this Fritz Joussen, CEO of TUI has said, "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.”