TUI to cut 8,000 jobs in attempt to lower costs by 30%

A global travel company has reported that it will be reducing its workforce by 8,000 jobs as it works to cut costs by 30 per cent.

TUI, which employs approximately 10,000 people in the UK and Ireland, said that the reduction in jobs is part of its restructure, as it attempts to “reinvent the holiday”.

Worldwide, the company employs between 60,000 to 70,000 people.

It said that in addition to the reduction in jobs, it will be assessing “non-profitable activities” and drive its digital offering.

The company has said that it will be reopening hotels in Germany in the near future, having been backed by a £1.6bn loan from the state.

Fritz Joussen, chief executive of TUI, commented: “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.”

The company added: “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.”

“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.”