Even as TUI Group is pushing for Greece and other European destinations to reopen, the German company has announced cutting 8,000 jobs in an effort to reduce costs amid the coronavirus crisis. A half-year report issued by the tours company described the COVID-19 pandemic as “unquestionably the greatest crisis the tourism industry and TUI has ever faced.”
TUI’s spokespersons went on to the travel industry will evolve because of the crisis, and that TUI would evolve, as well. In an effort to cust costs by 30% across the company’s operations, as many as 8,000 employees will be laid off indefinitely. The company also said it will focus on digitalization in the future, rather than the more labor-intensive strategies deployed in the past.
TUI also confirmed taking out a loan of €1.8 billion euros ($1.95 billion) in March from the German government to help see it through the crisis. The company announcement also told of the company withdrawing its full travel offering for the first time in TUI history. The company has said that the demand for travel is high and that customers are still searching for vacations online. About an hour ago TUI Group’s Twitter account tweeted this:
Earlier this month TUI’s CEO Fritz Joussen called on EU member states to develop a “roadmap for travel” to help his company sell holidays for 2020. Joussen said governments needed to provide a “clear perspective” on tourism within Europe so that his company can squeeze in some trips and revenue.
TUI stocks have nosedived since the start of the pandemic, accelerating the downward spiral starting early this month. As of the close yesterday, TUI AG/ADR had a price of 1.58 USD down -5.67%. TUI’s woes and those of Carnival, easyJet, and International Consolidated Airlines has dragged the London exchange down in recent days.