Kuoni to impose group-wide job cuts
Thursday, 30 Jan, 2009
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Jobs are to be shed across the Kuoni group as part of a three year cost saving initiative.
The move comes ahead of a predicted drop in bookings this year.
A statement said: “The cost savings targeted will mean a reduction in workforce numbers.
“As in the past, this should largely be achieved through natural attrition. For the few exceptions, Kuoni will be devising socially-acceptable solutions for the employees concerned.”
The Swiss-based operator did not specify the level of job losses.
“By investing in specific measures to enhance employees’ skills and in steadily improving efficiency, the Kuoni Group will both reduce its costs and prepare its employees for the growing challenges presented by the changing travel market,” the company said.
The Kuoni board voted yesterday to approve an exceptional CHF 106 million investment and cost reduction programme.
New key strategic initiatives are planned to further strengthen the company for the future, primarily by increasing differentiation of its products, optimising distribution and reducing costs.
The plans includes a strengthening of its electronic distribution channel will expand the business and reduce distribution costs.
A group-wide drive to harmonise booking and inventory systems will raise turnover by ensuring more efficient management of available capacities, and substantially reduce operating costs.
The first-ever global communications campaign is designed to promote innovative and bespoke product lines, offers and services. This will also ensure a consistent brand appearance, generate synergies and help the group secure a leading position as an exclusive product and service provider, the company said.
“Switzerland’s leading tour operator is taking these actions proactively, not just in view of the booking declines which are expected for 2009. Kuoni will show good financial results for the 2008 business year,” the statement said
Group CEO Peter Rothwell, formerly boss of TUI in the UK, said: "We believe in our future. And we believe above all in the future of travel.
"With these investments and initiatives, we are taking the right action at the right time. Kuoni will report total turnover of CHF 4 855 million for 2008, a 3.3-per-cent improvement on our prior-year result.
“Organic growth amounted to 4.4 per cent, while the net impact of currency movements eroded 7.0 per cent from our turnover result. Our EBIT for 2008 will also be broadly in line with our expectations."
The Kuoni Group will present its 2008 annual results on March 19.
by Phil Davies
Phil Davies
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