Tui warns of the loss of 8,000 jobs as it reduces costs

Travel firm Tui warned that up to 8,000 jobs will be cut as it seeks to cut costs by 30% due to the coronavirus pandemic.

The firm said its billing and earnings would be significantly lower in the current financial year, with cost savings that only partially offset the decline.

Tui has been bolstered by a € 1.8bn (£ 1.6bn) state-backed loan in Germany.

He was forced to cancel most of his travel program in March.

Travel restrictions in Europe and beyond mean that the crucial summer season is still in doubt, leaving millions of tourists unsure of their plans.

In the UK, the Ministry of Foreign Affairs is still advising against all non-essential foreign travel, with no indication of when the policy might change.

On Tuesday, Health Secretary Matt Hancock said “large and luxurious international vacations” were unlikely to be possible this summer.

“We are aiming to permanently reduce our overall cost base by 30% across the group. This will impact potentially 8,000 roles globally that will not be recruited or reduced,” Tui said in a statement.

Tui normally employs 70,000 people during the summer vacation season and 60,000 in the quieter months.

He said his restructuring would affect his airline business and would also involve the sale of “unprofitable activities.”

Tui added that he was ready to resume vacation this year, using new measures of social distancing and cleanliness.

“Vacation demand is still very high. People want to travel,” said Chief Executive Fritz Joussen.

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