Tag Archives: job cuts

Cook boss Green reveals strategy for the future

Posted on by
Reply

Cook boss Green reveals strategy for the future

By Phil Davies

Thomas Cook today unveiled long-awaited plans for a turn-around in the business involving the sale of non-core assets to raise up to £150 million.

No businesses were identified but ski arm Neilson and Preston-based luxury operator Gold Medal are thought to be among the divisions considered for disposal.

The group said the non-core disposal programme is underway with the opportunity to realise gross proceeds of £100 million to £150 million.

In a brief trading update ahead of half year results being published in May, the group described the UK turnaround as being on track.

Cook said its new profitable growth strategy was focused on “simplification, web innovation, flexible new products and services, enabled by rigorous execution and an integrated IT platform”.

Group chief executive Harriet Green said: “Our business transformation plans are ahead of schedule and already delivering substantially improved performance, which resulted in our recent return to the FTSE 250.

“We have exceeded our initial commitments and today announced a further £50 million of cost out actions, bringing the total profit improvement actions identified already to £350 million, £290 million of which is still to come.

“Stabilising the business has been our priority through addressing our cost and cash challenges, and strengthening the leadership team to create a more effective, aligned organisation focused on rigorous execution.”

She added: “We are excited to now reveal our new strategy based on four cornerstone principles; delighting customers with trusted, personalised holiday experiences through a high-tech, high-touch approach.

“Based on comprehensive consumer research we aspire to occupy a unique position in the market through our new strategy, deliver industry leading margins and customer loyalty, whilst maintaining consistent quality that can be trusted.

“We will expand our already successful hotel concepts; and build a new portfolio of flexible, trusted products and services; creating a single gateway for customers to access personalised recommendations, specifically tailored to meet their needs.

“The operational credibility of this strategy rests on the success of our self-help measures to date, our trusted brand and the clear targets and KPI’s against which we are ready to be judged.

“We have real options now, with the prospect of delivering improved revenues, strengthened gross margin, better cash flow and disposal opportunities, to build a strong and exciting future for the Thomas Cook Group, worthy of our customers and our heritage.”

Cook said the new strategy, which includes raising web penetration to half of all sales, has been based upon extensive research and analysis including a comprehensive, in-depth survey measuring the attitudes and changing needs of almost 18,000 travellers, validated against the experiences of many of its own customers.

The group added: “Building on its trusted brand and 171 year heritage Thomas Cook will deliver personalised holiday experiences through a high-tech, high-touch approach.”

This comes a week after the company under UK boss Peter Fankhauser announced 2,500 job losses and the closure of 195 travel agency branches.

Today the group said the “thorough” UK restructuring was underway to re-shape the organisation to meet customer needs with a target to deliver UK EBIT margin in excess of 5% by 2015.

A transformed approach to hotel purchasing to utilise group scale is already delivering “tangible benefits”.

Cook described its business transformation as gaining momentum with a further £50 million of “cost-out actions” identified bringing the total profit improvement actions so far to £350 million with more to come.

The Northern and Central Europe divisions continue to build on their industry leading positions while Cook is creating a group-wide airline business to improve costs, quality, reliability and customer experience to build a stronger business.

Travel Counsellors targets Cook employees with ‘discovery days’

Posted on by
Reply

Travel Counsellors targets Cook employees with ‘discovery days’

By Phil Davies

Travel Counsellors targets Cook employees with 'discovery days'Travel Counsellors today reported an “unprecedented” rise in job seekers following Thomas Cook announcing the closure of 195 agency branches and 2,500 redundancies.

The homeworking agency says there is a future for “talented travel professsionals” and is organising a number of recruitment initiatives including ‘discovery days’ across the UK.

These will offer an insight to the future of travel and show retail agents that there is an alternative to life on the high street.

Cook staff facing job losses are being invited to annual mini-conferences being held in Manchester, Birmingham and London on April 15-27. A special webcast will also be held.

Travel Counsellors who have previously worked on the high street, and for Cook in particular, will be attending the discovery days and will host the webcast.

Some existing Travel Counsellors have offered to open their homes to those interested in joining so they can see how the company works and answer questions.

“This will give potential recruits the chance to speak directly with people who have been in their position before, and hear why they took the leap to run their own business,” Travel Counsellors said.

The company believes its impressive sales for the start of the year is proving a “compelling reason” for Cook employees to express interest in joining Travel Counsellors.

Average earnings for UK Travel Counsellors are up to £21,000 in the past year, with the top 100 earning £59,871.

Head of global recruitment Simon Burke said: “We have had to reprint a new batch of our information packs as the demand has outstripped our normal supply.

“We are mindful that this is very difficult time for Thomas Cook employees and we want to give them as much support as possible, so this is why we’re going to lengths to ensure they see that there is light at the end of the tunnel.”

Travel Counsellors quoted former Cook employee Donna Horner who said the idea of working from home had worried her but “it really has been the best thing I’ve ever done”.

“I’ve never known support like it, not in all the years I worked on the high street. I feel far from isolated, in fact that couldn’t be further from the truth – I felt more isolated when I was working on the high street.

“Importantly, I do earn decent money. I can understand why some Thomas Cook employees may feel anxious about taking the leap and may want to try to find a job on the high street, but all I can say is taking the step to work for Travel Counsellors have allowed me to truly enjoy working in travel again.”

Thomas Cook job cuts are necessary, says expert

Posted on by
Reply

Thomas Cook job cuts are necessary, says expert

By Melanie Hall

Thomas Cook job cuts are necessary, says expertThomas Cook Group’s decision to cut 2,500 jobs and close 195 stores has gone down well in the City as a much-needed restructuring following its “dismal” financial performance, said a leading analyst.

Douglas McNeill, investment director at stockbrokers Charles Stanley, told Travel Weeklythat the move, although sad for those at risk of losing their jobs, was necessary.

“The City is pleased to see restructuring taking place,” said McNeill. “No-one is ever keen to see other people losing jobs so the restructuring that is underway is tempered by thoughts about those losing jobs, but it’s beyond question that things needed to change at Thomas Cook.

“I would say that the City has thought something like this was on the cards for quite some time. The management has led the City to expect cost savings without being particularly specific.”

“lt hasn’t required much imagination to realise that a lot of reductions was on the way,” said McNeill, as it is doing less business than it used to.

“Capacity is down this summer season, 4% down at the last count,” he said. “That’s not the first such reduction. Reduction in the winter season was greater than that. Sooner or later, you are going to conclude that you are going to need fewer staff.”

McNeill said that Thomas Cook’s chief executive Harriet Green was instilling confidence because of her plans to cut costs.

“Financial performance has been dismal for quite some time and the share price tells you that the City is confident in Harriet Green’s ability to restructure,” he said.

Thomas Cook saw its share price drop by more than 4% yesterday in the wake of the travel group’s mass jobs cut announcement a day earlier.

Shares in the company were down 3.5p to 82.5p but this was more than 15% below its 52-week high of 97.38. At yesterday’s rate, the group’s market capitalisation was £787.92 million.

Cook is to cut 2,500 jobs and close almost 200 agency branches as part of a financial turn around plan. An update on the business transformation plan and new strategy for the group is due to be given by chief executive Harriet Green on Wednesday.

A brief trading update will be given ahead of first half results to be announced in May.