Tui plans to cut up to 8,000 jobs in response to the chaos of coronaviruses invading the tourism industry.
Europe’s largest travel group said it had to cut costs permanently to deal with “without a doubt the biggest crisis the industry and You have ever experienced”.
He lost 740 million euros (650 million pounds sterling) in the first three months of the year, requiring a quick bailout from the German state, as the company lost money and canceled most of his vacation until June.
Travel restrictions in most of its major markets have destroyed the demand for vacations, with nine out of 10 Tui employees having been put on vacation or cut in wages in a desperate attempt to cut costs. Tui had more than 70,000 employees in September.
The German government supported a € 1.8 billion loan in March to help the company survive, but Tui said the travel industry would change forever after the pandemic, requiring major cuts.
Tui said on the stock market on Wednesday: “We aim to permanently reduce our overhead base by 30% across the group. This will impact potentially 8,000 positions worldwide that will not be recruited or reduced. “
The pandemic has forced the travel industry to decline significantly, despite job retention programs. Tui’s job cuts come after British Airways has revealed its intention to ax 12,000 roles, and Ryanair and Virgin Atlantic said they cut 3,000 jobs each.
Tui was re-examining his activities to identify areas to cut and could withdraw from entire markets or destinations. Cuts in her airline were highly likely and she would “divest and deal” with unprofitable businesses.
Tui said he was ready to resume vacation travel, but he also warned of the difficulties faced by travel agencies trying to operate with the prospect of a vaccine still far away.