TUI to axe 550 jobs in Germany
German tourism giant TUI said Thursday it would axe 550 jobs out of a total 2,750 in Germany and expand its Internet presence in a bid to cut costs in the fiercely competitive sector.
TUI promised to cut as many jobs as possible via attrition or natural wastage where people on limited or temporary contracts were not replaced and a hiring freeze was introduced.
"Nevertheless, redundancies cannot be totally excluded," the company said in a statement.
TUI Germany "plans to further expand its market leadership by 2015 and boost our return on sales and in order to achieve this, we must push growth and expand our online business. As we have said before, this makes job cuts inevitable," said chief executive Volker Boettcher.
The works council complained that its fears of more than 400 jobs being axed "have been confirmed", but insisted a "large-scale cull of personnel has been avoided."
The "adjustment in TUI's business model will boost competitiveness and secure the jobs of the remaining workforce" in the longer term, the works council said.
Nevertheless, the service sector trade union Verdi lashed out at the plans, saying "the number of officers is being increased, while parts of the crew are having to jump ship."
© 2011 AFP