Tui Group to Cut 8,000 Jobs Worldwide as Travel Industry in Crisis Due to Pandemic

Multinational travel and tourism company Tui Group will cut 8,000 jobs around the world amid the impact from the coronavirus pandemic, according to the firm's statement, as cited by Sky News.

"We are targeting to permanently reduce our overhead cost base by 30% across the entire group", Tui Group argued."This will have an impact on potentially 8,000 roles globally that will either not be recruited or reduced".

According to the group, the current pandemic is "the greatest crisis" the travel industry has ever suffered.

Tui Group, headquartered in Hannover, Germany, is the largest tourism company in the world the largest tourism company in the world. The Anglo-German provider has reported €845.8 million in losses in the first half of 2020, while over the course of the previous 12 months, it has only lost around €289.1 million. 

According to the company's chief executive, Friedrich Joussen, Tui Group has already cut its costs by 70%, but is still losing around €250 million per month.

"The tourism industry has weathered a number of macroeconomic shocks throughout the most recent decades, however the COVID-19 pandemic is unquestionably the greatest crisis the industry and Tui has ever faced", the company said in its report.

Tui Group owns five European airlines, including TUI Airways, as well as operates more than 300 hotels and hundreds of travel agencies worldwide. However, due to the coronavirus pandemic, most countries have effectively shut down their borders and suspended tourist activities; 100 million jobs in the industry have been put at risk, according to the World Travel and Tourism Council. It is believed that over 80% of flights were restricted throughout April across the globe, including those servicing Asian, North American and European destinations.