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The company claims that the crisis will reach up to 8,000 jobs, which will be reduced or not filled. At the end of March, the company had 53,500 employees worldwide.
TUI presents a quarterly report on Wednesday, indicating that the travel operator had a deficit of just over NOK 8 billion in the first quarter. In the same period in 2019, TUI reported a deficit of just over $ 1.9 billion.
The first months of the year are often difficult for travel companies, who collect most of their income in the summer. Only 35 percent of travel was sold for this year’s summer vacation, a big drop of 59 percent in the corresponding period last year.
CEO Fritz Joussen says the crown crisis will force change, both for TUI as a company and for the tourism market itself.
“It requires savings in investment, spending, overall our size and presence worldwide,” he says.
The prospects for the tourism industry are now so uncertain that TUI will not make any forecasts for its annual result. The company has received a loan of almost NOK 20 billion from the German government. In total, TUI has more than NOK 23 billion in liquidity.
Communications Manager Nora Aspegren at TUI Norway will not say whether the cuts will affect employees here in Norway.
– We will be back with more information at a later date, he tells NTB.
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