EMCC European Monitoring Centre on Change

TUI

Company/Organisation:
TUI

Geographic Location

Country: European Union
Location of affected unit(s): UK; Germany; Central Europe

Company

Sector: Administrative services
Administrative and support service activities
79 - Travel agency, tour operator and other reservation service and related activities
Number Employed: 63000

Employment Effects

Announcement Date: 15-12-2006
Planned Job Reductions min: 3600
Planned Job Reductions max: 3600
Type of Restructuring: Internal restructuring

Additional Information

Tourism and shipping group TUI has announced job losses of 3,600 in its operations in Europe. 2,600 jobs will be lost in the UK, whilst 400 will be lost in Germany and 600 in Central Europe. The changes form part of a recovery programme designed to save £167m in costs. Roughly a third of the lay-offs in Britain are being made at travel agencies, a third in back-office operations and another third at call centres. TUI said it was making the cuts in response to a surge in holiday sales through the internet, which now accounts for almost half of total UK holiday sales. 'TUI UK has been re-balancing its distribution capacity which over the last two years has led to a reduction in shops and call centres,' the group said. 'Continuing this process is expected to deliver further headcount savings over the next two to three years although no specific plans currently exist.' TUI currently employs 63,000 people across Europe, including nearly 8,000 in the UK. Overall, 900 back-office and support positions are set to go across Europe as part of the massive restructuring programme. As part of the recovery plan, TUI plans to combine its Hapagfly and Hapag-Lloyd Express airlines into a single brand called TUIfly.com and said it had ordered 65 Boeing aircraft for around €2bn.