TUI slashes 8,000 jobs

Major operator cuts 15% of their workforce

TUI planeVarious sources report this morning that holiday giant TUI has announced it will slash up to 8,000 jobs to trim costs in the light of the COVID-19 crisis hit to the travel sector – some 15% of their workforce. The implications will no doubt reveal more bad news for Madeira, where they have traditionally had a significant presence.

The world’s largest package holiday operator wants to cut costs by one-third and also put more focus on regional breaks as opposed to overseas holidays. The company is eyeing a return to tourism – the chief executive Fritz Joussen said: “Summer holidays in Europe can now gradually be made possible again, responsibly and with clear rules. People want to travel. The season starts later, but could last longer”.

TUI Group comprised of two companies, TUI AG (formerly the industrial group Preussag AG) and TUI Travel, and have a number of strong tourism, hotel and cruise brands. Their expansion has seen them acquire some of the biggest names in European tourism including, Thomson, Fritidsresor and Nouvelles Frontières and shareholdings in the hotel groups RIU and Magic Life. In 2007 the tour operating businesses of TUI AG merged with the UK listed First Choice Holidays plc.

The blog reported in 2017 that the “Thomson” name officially disappeared from the UK holiday marketplace on October 16, becoming the last “TUI” subsidiary to adopt the corporate branding. The Thomson Travel Group was created in 1965 when Canada’s Thomson Corporation bought four existing UK tour operators — Gaytours, Luxitours, Riviera and Skytours — as well as the charter airline Britannia Airways.

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