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Thomas Cook plans UK staff cuts
Wednesday December 1st 2010
Thomas Cook will axe 500 jobs in the UK after slower summer trading and the volcanic ash cloud damaged full-year profits.
The travel giant expects to prune around £50 million from its UK operations with the measures, which will reduce the managerial and support staff in the UK and renegotiate supplier costs and upgrade IT.
As a result of this announcement employees from the travel company might want to make sure they have adequate income protection cover to safeguard against the worst happening.
In the year up to September 30, the weak pound, hot early-summer weather and the closure of European airspace in April contributed to a 34% fall in UK adjusted operating profits to £107.5 million.
But Thomas Cook said Britain's decline was slightly offset by growth in central Europe and Germany. Group revenues fell by 5% to £8.9 billion, while adjusted, underlying pre-tax profits slipped 6% to £277 million.
Thomas Cook undertook a review of its UK workforce, which stands at around 13,000 to 15,000, to help combat uncertain economic conditions in the wake of public spending cuts.
Manny Fontenla-Novoa, Thomas Cook chief executive, said the actions would "simplify and streamline" the UK business, resulting in significant cost savings on an annualised basis.
Copyright © Press Association 2010
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