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

Global travel company TUI will be reducing its workforce by 8,000 jobs as it works to cut costs by 30%.

TUI employs approximately 70,000 people worldwide and 10,000 in the UK and Ireland. It said that the reduction in jobs is part of its restructure in the face of the challenges presented by coronavirus. In addition to the reduction in jobs, TUI will be assessing non-profitable activities and drive its digital offering.

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

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