The travel industry in the UK is starting to improve. However, for companies like Thomas Cook, it’s not improving fast enough. Recently the holiday firm announced that it would be cutting 2,500 UK jobs. This just adds even more stress to the ever-growing unemployment rate in the UK. With these cuts come the closing of close to 200 travel agencies run by Thomas Cook.
Of course, saying that Thomas Cook is the only company in the UK laying off workers would be a lie. In fact, this announcement from Thomas Cook comes just after companies like Dreams and Axminster Carpets cut 400 and 300 workers respectively.
The Europe and UK chief executive for Thomas Cook, Peter Frankhauser, said that this isn’t an easy choice to make. These kinds of choices can never be easy. However, job cuts have to be made for the better interest of the company. Thomas Cook has to look at getting its administrative costs as low as possible during these troubled times.
Thomas Cook said that 1,600 of these jobs will come from high street shops. More than likely, this will include workers from the high street shops that are closing. The rest of the jobs will be cut from administrative positions. So in short, no workers at Thomas Cook are safe from this recent cutback.
Unfortunately, it’s the head jobs over at the Thomas Cook offices in Peterborough and Preston that are the most at risk. On top of that, it has already been made clear that the Accrington office is going to be shut down as well. These are three major offices that people would assume would be safe from such cuts. However, during these troubled times, no one is safe.
According to Thomas Cook, these new cuts represent a huge 15% deduction in its workforce. On top of that, the company is only going to be left with 874 travel agencies located across both the UK and Northern Ireland.
It should be noted, that most of the stores that are closing down are Co-operative Travel sites. For those who don’t remember, Thomas Cook actually purchased these stores two years ago. Of course, this was a move that was made by the previous boss for the holiday company, Manny Fontenla-Novoa. When all is said and done, Thomas Cook probably wishes now that they hadn’t bought Co-operative Travel, as they are now closing most of the stores anyway.
Fankhauser went on to say that these decisions are having huge impacts on people, and Thomas Cook does not take that lightly. That being said, Thomas Cook owes it to the consumer to shape the business as effectively as possible. This has to be done to ensure that people are able to book the holidays that they want, at a price they can afford.
In short, Thomas Cook believes that these cuts are going to make the company better overall. In terms of what “better” means, it mostly means more profitable. Of course, this would be good for Thomas Cook since they have been struggling now since the spring of 2011.