Horrible news for high street and travel, Thomas Cook will cut some 2,500 UK jobs and close nearly 200 agencies according to news from Reuters, the world’s oldest travel firm. The Euro and other economic crises in key markets for Cook are to blame for what might end a fatal blow to the 172 year old company.
Thomas Cook still employs some 15,000 plus people in the UK and Ireland, but from an outsider’s perspective the company has almost literally sold of or reorganized everything it can in order to get their debt and costs in order. This announcement from Thomas Cook Group tells more of the company’s urgent need for restructuring. I quote Peter Fankhauser, CEO Continental Europe & UK:
“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. As we improve and develop our online capabilities, maintaining a strong presence on the High Street is an important part of our omni-channel strategy. Even after these changes we will still have one of the largest retail networks in UK travel.”
Fankhauser goes on to iterate how essential it is for the company to “optimize” the company’s business worldwide. Essentially, the CEO speaks of a dwindling remand and too many people at TC to serve it, when all is said and done. His personal appeal to employees somehow reads a bit defeatist. Added to this news yesterday’s call on stockholders for disclosure, and there could be bigger news in the wind requiring a vote.
The current share price of Thomas Cook is 86.50p +1.00p
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Head of Group Communications, Thomas Cook Group
0207 557 6431 or 07568 105144