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Thomas Cook mulls job cuts in UK

Thomas Cook mulls job cuts in UK

Tour operator Thomas Cook has mooted the possibility of “substantial” job cuts in the United Kingdom as it seeks to reduce costs.

The tour operator remains apprehensive over the state of the economy, with the coalition government due to implement cuts of up to a quarter in public spending over the coming months. 

Thomas Cook presently maintains a UK workforce of between 13,000 and 15,000 staff, with the results of the review due to be announced in December.

Thomas Cook chief executive Manny Fontenla-Novoa said: “The review is looking at everything from the bottom up and top down. Of course that includes staff, but also suppliers and our overhead structures.”

The tour operator issued a profit warning earlier this year, slipping into the red for the third quarter.


Tour Operators

British tour operators have suffered from consumer caution this year, with a fragile economic recovery encouraging many to save money.

Sunny weather in the UK during the early part of the summer, the FIFA 2010 World Cup in South Africa and disruption from Iceland’s volcanic ash cloud also all hit traveller numbers.

Thomas Cook’s suffered further woe over the key summer holiday period, when technical difficulties caused problems among its 100-strong aircraft fleet.

The tour operator said the faults would hit operating profits by around £10 million.

Thomas Cook will announce its full year results on December 1st 2010.