ebookers.com today announced a cost reduction program following the US terrorist incident on September 11th and gives guidance on the impact of this incident on its financial position.
ebookers is reviewing every aspect of its cost structure in order to ensure that the company remains competitive and flexible in the current travel environment. As part of the program, ebookers has indicated to its staff that it is looking to reduce staff numbers by between 10 and 20%. ebookers has over 700 full-time employees across 11 countries. Staff reduction forms part of a wider program of cost reduction initiatives including a review of supplier contracts and of fixed costs and overheads.
Despite a substantial short-term impact on sales, ebookers expects to report a much lower third quarter loss when compared to the second quarter (ending June 30, 2001), representing a significant advance towards achieving positive cash flow. ebookers is due to announce its results for the third quarter period July-September 2001 on Monday 29th October.
Dinesh Dhamija CEO ebookers.com comments: “There are strong indications within our business that consumer interest is gradually returning towards normal levels. However, we are taking decisive measures to ensure that we have the cost structure suitable for slower growth of demand and yet the flexibility to take advantage of both the complete return of demand and other market opportunities that this environment presents.”