Thomas Cook to cut jobs and close travel agencies
Tour operator Thomas Cook has said it is planning to become more high-tech and place greater focus on providing city breaks as the firm attempts to cut costs. The business also intends to sell off divisions in the UK as part of its turnaround strategy. In 2011, Thomas Cook was forced to ask banks for a loan extension.
Finance director Michael Healy has announced plans to make £50 million worth of savings. The firm last week said it will be closing 195 high street outlets and cutting 2,500 jobs.
Harriet Green, the operator’s chief executive, said a core priority has been to stabilise the business by saving cash and cutting costs. She added that a stronger leadership team would lead to a more effective organisation. Green has already announced plans to cut the number of brands in the UK from 27 to nine.
Among those that could be up for sale include long-haul specialist Gold Medal, Elegant Resorts, the upmarket travel agent and skiing venture Neilson. At the end of last year Thomas Cook declared £485 million in losses, but said that most of this was to do with deals made by past management and write-offs.
The travel firm previously announced that it was implementing a cost cutting programme to in order to save £300 million.
Finance director Michael Healy has announced plans to make £50 million worth of savings. The firm last week said it will be closing 195 high street outlets and cutting 2,500 jobs.
Harriet Green, the operator’s chief executive, said a core priority has been to stabilise the business by saving cash and cutting costs. She added that a stronger leadership team would lead to a more effective organisation. Green has already announced plans to cut the number of brands in the UK from 27 to nine.
Among those that could be up for sale include long-haul specialist Gold Medal, Elegant Resorts, the upmarket travel agent and skiing venture Neilson. At the end of last year Thomas Cook declared £485 million in losses, but said that most of this was to do with deals made by past management and write-offs.
The travel firm previously announced that it was implementing a cost cutting programme to in order to save £300 million.