U.K. travel organisation Thomas Cook plans to cut approximately 2,500 jobs and close down 195 retail travel agencies.

The job cuts would amount to a 16% reduction in Thomas Cook’s 15,500-person workforce.

“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,” said Thomas Cook CEO Peter Fankhauser.

“Even after these changes, we will still have one of the largest retail networks in U.K. travel.”