TUI Group has announced plans to cut 8,000 jobs worldwide due to the COVID-19 pandemic.
The Anglo-German multinational travel and tourism company, which employs over 71,000 people, has seen most of its operations halted due to the pandemic, which it has described as “the greatest crisis” the travel industry has faced.
Other airlines and companies in the tourism sector have also struggled amid the pandemic, with travel restrictions imposed by most countries in an effort to control the Coronavirus. Flybe collapsed earlier this year and other airlines including British Airways and Virgin Atlantic have announced large job cuts over the coming years.
The travel company said;
“We are targeting to permanently reduce our overhead cost base by 30% across the entire group.
“This will have an impact on potentially 8,000 roles globally that will either not be recruited or reduced.”
Announcing losses of €845.8m in the first half of 2020 on Wednesday, Tui said, “The tourism industry has weathered a number of macroeconomic shocks throughout the most recent decades; however, the COVID-19 pandemic is unquestionably the greatest crisis the industry and Tui has ever faced.”
It is unknown when the travel and tourism sector may able to fully return to normal following the pandemic. Borders remain closed in many countries, and there is also the added complication of trying to keep passengers safe while in the air.
TUI is the largest leisure, travel and tourism company in the world, owning travel agencies, hotels, airlines, retail stores and cruise ships.