Avis Europe to reduce workforce by five per cent

Rental car firm Avis Europe will cut 315 jobs from its workforce, largely in the UK, following a warning that full-year profits will be lower than last year.

The firm operates under the Avis and Budget brands in Europe, the Middle East, Africa and Asia. It has indicated that trade has “noticeably weakened in the final quarter,” noting a significant downturn in holidaymaker car hire, particularly with travellers from America.

Avis Europe said that the cuts are equivalent to five per cent of its workforce, and will be “focused” on the UK and the other markets where business has been most affected. The firm will also close a number of “low margin rental locations” and move its UK head office staff to the group headquarters location in Bracknell, Berkshire.

According to the company, these cost-saving measures will also include a “rigorous” freeze on recruitment and substantial reductions in discretionary spending, with the aim of saving €16 million in spending per year.

The chief executive of Avis, Pasacal Bazin, said: “We have taken decisive action to raise pricing, reduce costs and maintain flexibility. Together with the ongoing improvements in our product and customer service levels, these actions will help position the business for the likely continued difficult conditions in 2009 and also for the longer term.”

Thanks to www.telegraph.co.uk for the above quotes, for more information on this article please visit their website.

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