Thomas Cook to cut 2,500 jobs

Thomas Cook to cut 2,500 jobs

Thomas Cook Group is to cut 2,500 jobs across its back office and retail network.

The group also plans to close 195 stores as part of the restucture of the UK business.

A 90 day consultation begins today over the future of 2,500 jobs, both back office and retail. The group currently employs 15,500 people in the UK.

The back office roles will include staff at the head offices in Peterborough and Preston. The consultation also includes the proposed closure of the Accrington office.

Stores will close which do “not meet the performance targets of the business” and are in areas where Thomas Cook has more than one retail outlet.

Peter Fankhauser, chief executive Continental Europe & UK, said:  “It is never easy to make decisions that impact directly on our people, but we also owe it to our customers to shape the business effectively and ensure that, when they book their holiday with us, our administrative costs are as low as possible.

“As we improve and develop our online capabilities, maintaining a strong presence on the High Street is an important part of our omni-channel strategy. Even after these changes we will still have one of the largest retail networks in UK travel.

He added: “It is essential that we operate with the right number of people as we move forward into the next era for our company, allowing us to meet the future needs of our customers more effectively.

“These proposals will mean a stronger Thomas Cook that continues to be a major employer in the UK dedicated to providing excellent holiday experiences to our 23 million customers. We are in consultation with our unions and employee representative bodies to minimise the impact of these changes and I am speaking personally to all employees today to provide information and support through this period of consultation.”

Thomson Airways plans to cut 600 cabin crew

Thomson Airways plans to cut 600 cabin crew

By Ian Taylor |  Feb 15, 2012 10:00AM GMT
Thomson Airways plans to cut 600 cabin crew

Thomson Airways plans to make more than 600 cabin crew redundant – almost one in four of those working at the airline.

The Tui Travel-owned carrier informed officials of the Unite union on Tuesday and will begin a 90-day consultation with staff and their representatives this month.

Thomson declined to confirm the number of jobs at risk or to give further details, but in a statement said: “This is a result of our continuing drive to become more efficient which includes changes to the aircraft fleet.”

The carrier is replacing its 23 Boeing 757s with smaller Boeing 737s and said: “Boeing 737-800 aircraft require fewer cabin crew and are replacing the 757s when they come up for renewal.”

The 737 carries almost 50 fewer passengers than Thomson’s 235-seat 757s. However, this would not by itself explain the projected loss of more than 600 jobs.

Unite has strong hopes it can maintain a policy of no compulsory redundancies at the airline. Regional officer Kevin Hall said: “We are confident we will be able to mitigate the number of redundancies substantially through voluntary redundancies and accommodating changes to contracts.”

He said: “These are preliminary discussions. The company wants cost savings and there are a number of areas it believes it can make significant savings. But this is not a company that came in for a punch-up. This is a company looking ahead.”

Hall declined to give more details ahead of Unite issuing a statement on Wednesday.

However, sources suggest Thomson might be content with a smaller reduction in jobs in return for changes to cabin crew contracts.

A company spokesman said: “Thomson Airways is committed to mitigating the impact of these changes on cabin crew and is working in partnership with the trade union to achieve this.”