Flight Cen­tre slashes costs

Travel Daily - - Front Page -

STAFF cuts, 250 store clo­sures and sus­pen­sion of all pro­mo­tional ac­tiv­ity are among rad­i­cal ac­tions an­nounced to­day by Flight Cen­tre Travel Group (TD break­ing news) as the com­pany con­tin­ues to grap­ple with the COVID-19 cri­sis.

About 6,000 sup­port and sales roles glob­ally will be stood down or be­come re­dun­dant, in­clud­ing around 3,800 peo­ple in Aus­tralia who will be stood down.

FCTG will ini­tially re­tain up to 70% of its global work­force.

CEO Graham Turner hailed the tire­less work of the com­pany’s em­ploy­ees as­sist­ing stranded cus­tomers in re­cent days, but said “un­for­tu­nately the vast pro­por­tion of the work that they would nor­mally un­der­take has now stopped.

“As a re­sult, we have been forced to make ex­tremely dif­fi­cult de­ci­sions, in­clud­ing tem­po­rar­ily stand­ing down some of our peo­ple and can­celling our in­terim div­i­dend, with a view to pre­serv­ing more jobs for the fu­ture,” he said.

Other ma­jor ex­penses on the chop­ping block in­clude FCTG’s $15 mil­lion monthly sales and mar­ket­ing spend, rental costs and the planned clo­sure of 250 stores na­tion­wide across a range of brands, part of a global 35% cut to FC’s leisure re­tail foot­print.

Turner said FCTG had proac­tively en­gaged with a large pool of other prospec­tive em­ploy­ers to se­cure im­me­di­ate ac­cess to over 10,000 sales & call cen­tre va­can­cies for stood down staff, as well as seek­ing rapid ac­cess to ben­e­fits.

All se­nior ex­ec­u­tives and Board mem­bers are on half pay, with no bonus pay­ments to be made.

Turner said FCTG was also well­pro­gressed in pur­su­ing ini­tia­tives to boost its liq­uid­ity, but in the mean­time its vol­un­tary share trad­ing sus­pen­sion re­mains in place.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.