Tui Group is to cut 8,000 jobs worldwide due to COVID-19, which it describes as “the greatest crisis” the travel industry has faced.
The company said: “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.”
As the coronavirus pandemic took hold, governments brought in travel restrictions which grounded flights and cancelled holidays.
Some airline bosses have warned that international travel might not be back to pre-pandemic levels for another three years.
On Wednesday Tui posted losses of €845.8m (£747m) in the first half of 2020, compared to €289.1m (£255m) in the previous 12 months.
The Anglo-German company’s report said: “The tourism industry has weathered a number of macroeconomic shocks throughout the most recent decades, however the COVID-19 pandemic is unquestionably the greatest crisis the industry and Tui has ever faced.”
The firm’s balance sheet has been backed up by a €1.8bn bridging loan from the German government but this must be paid back in 2022, increasing pressure on Tui to reduce debt.
Tui’s chief executive Friedrich Joussen said the company was burning through cash at a rate of €250m (£220m) a month, despite recently cutting costs by 70%.
He added; “We must change Tui – make it leaner, faster and less capital-intensive.”
The grounding of Boeing 737 MAX aircraft around the world, following two fatal crashes, has also impacted the groups financial results.
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