P&O to cut 1,200 jobs
The ferry operator P&O has announced plans to cut some 1,200 jobs while reducing the size of its ferry fleet and closing four of its 13 routes.
The company has been under pressure from no-frills airlines and the Eurotunnel, while recent increases in French tobacco duty has reportedly reduced numbers of British travellers on so-called “booze cruises”.
The BBC News website reports that the reorganisation comes in the wake of a review of operations, launched after P&O’s ferry division announced full-year losses of £40 million.
Chief executive Robert Woods is quoted as saying: “I am determined to see a major improvement in the profitability of P&O Ferries. What we are announcing today will enable us to have a simplified, customer-focused product operated on fewer routes, with fewer ships and a substantially lower, more flexible cost base.
“While we greatly regret the possible job losses, we are convinced that what we are proposing is the best way forward for the long-term prosperity of the business.”
As well as laying off 1,200 staff, the BBC reports, the company will transfer 350 positions to its rival Brittany Ferries, which will also take over two of P&O’s boats.
The routes to be cancelled are: one of the seven daily Dover to Calais crossings; Portsmouth to Cherbourg, Le Havre and Caen; and Rosslare to Cherbourg. P&O reportedly hopes that the planned restructuring will save some £55 million.
Report by Tim Gillett, News From Abroad Ltd
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