Flight Centre slashes costs
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.