News from deutschland..TUI workforce likely to shrink by over a third by November - TUI share implod22 Jan 2021 15:51
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The slump in the tourism business in 2020 has led to a personnel bloodletting at the industry leader TUI, according to information from Group circles.
Last November, the entire group had 37 per cent fewer employees than a year earlier, Deutsche Presse-Agentur learned on Friday. According to the report, the workforce shrank from just under 60 300 people in November 2019 to around 38 200 before the end of 2020. This time, the effects of the pandemic were added to the usual seasonal effects. On the side, the world's largest travel provider is driving a sharp austerity drive, especially abroad.
When the official figures for the 2019/2020 financial year were presented in December, it was already clear that the consequences of the Corona pandemic would also have a strong impact on employment. At the end of September 2020, TUI still had around 48,300 employees - after 71,500 a year earlier. In the past summer, the group initially needed fewer seasonal employees in the holiday destinations than in normal years. After the withdrawal of travel restrictions, the company explained that there had been more hiring in the meantime. However, there were also closures in winter sports regions and in southern destinations such as the Canary Islands and Egypt.
In winter, the tourism business is otherwise weaker - before Corona, the difference in staffing compared to summer was 15,000, as a spokesperson reported. Overall, however, the savings programme at TUI is also likely to play a role. CEO Fritz Joussen wants to cut 8,000 jobs, especially outside Germany. So far, he does not consider further cuts necessary because the measures introduced from 2023 onwards would bring more savings than initially calculated.
According to the Group environment, job cuts in Germany in the period up to November were around 17 per cent compared to the previous year. In the hotels at the holiday destinations, on the other hand, the workforce was more than halved (minus 57 per cent). The airline TUIfly is said to have employed 12 per cent fewer staff and TUI Deutschland 7 per cent fewer.
Translated with www.DeepL.com/Translator (free version)
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