TUI may cut up to 4,000 jobs in Europe

8th December 2006, Comments 0 comments

BERLIN, Dec 7, 2006 (AFP) - TUI, Europe's biggest travel and tourism group, is expected to cut between 3,500 and 4,000 jobs in France, Britain and Germany as part of a restructuring effort, the German daily Sueddeutsche Zeitung said in its Friday edition.

BERLIN, Dec 7, 2006 (AFP) - TUI, Europe's biggest travel and tourism group, is expected to cut between 3,500 and 4,000 jobs in France, Britain and Germany as part of a restructuring effort, the German daily Sueddeutsche Zeitung said in its Friday edition.

The group's supervisory board is to decide on the plan next week, the paper said without citing its sources.

TUI told the Sueddeutsche Zeitung that its report was "speculation".

The paper said chairman Michael Frenzel would announce the job cuts and the restructuring plan on December 15, when he would also revise downwards the group's earnings outlook.

In November, TUI reported weaker-than-expected third quarter results following continuing difficulties in its shipping division.

Net profit was cut in half in the period from July to September, totalling EUR 299.4 million compared with EUR 604.3 million a year earlier.

Analysts quoted in Sueddeutsche Zeitung's report said that the cost of the restructuring programme would push TUI into loss this year and in 2007.

The paper said Frenzel was under pressure from shareholders to spin off TUI's shipping and tourism branches, enhancing the valuation of those divisions.

TUI's current market capitalisation is EUR 4 billion.

TUI has already cut 6,000 jobs since 2003. Of the total, 2,000 were cut in its British operations and 2,000 when it took over British-Canadian shipping company CP Ships.

The company employs 61,840 staff, of whom 52,550 work in its tourism division.

Copyright AFP

Subject: French news

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