German tourism giant TUI to slash 8,000 jobs over coronavirus crisis
The world's biggest tourism group TUI said Wednesday it planned to slash 8,000 jobs in a bid to cut costs as the industry struggles to stay afloat with travel severely curtailed by the coronavirus pandemic.
"We are targeting to permanently reduce our overhead cost base by 30 percent across the entire Group," said TUI of the cuts affecting one in 10 jobs.
"This will have an impact on potentially 8,000 roles globally that will either not be recruited or reduced."
In total the company employs around 70,000 people worldwide. The head office of TUI is based in Hanover, where the bulk of the firm's some 4,000 staff in Germany are employed.
Highlighting the impact of the crisis, the group reported a net loss of €763.6 million for its second quarter to March.
To halt transmission of the coronavirus, many countries have slammed borders shut and banned tourism, leaving planes grounded and cruise ships idle at ports while hotels are left empty.
To survive the crisis, TUI had sought a lifeline from the government, signing a deal in early April for a €1.8 billion state-guaranteed loan to keep it afloat.
It is one of the biggest examples of German companies making use of a huge government rescue package aimed at cushioning the impact of the pandemic on Europe's top economy.
The German government has promised "unlimited" credit to help companies weather the coronavirus storm.
TUI had announced job cuts before the coronavirus pandemic hit.
In July 2019, the tourism group said it planned to cut around 450 jobs in Germany within the next two and a half years as it moved to digitise more of its business operations.