After a detailed review of the company, Jetset Travelworld Group has announced the reduction of up to 110 positions, with more than half of those positions attributable to the Travel Management segment.
The move comes less than a month after the company announced a slump in trading conditions, and will see 60 percent of job reductions come from the Travel Management department and others from the Groups wholesale division.
Despite resulting in a one-off cost of up to $7.5 million that will funded from existing cash reserves and available facilities, the company expects job cuts will lead to an annualised benefit of up to $9 million.
Jetset Travelworld Group chief executive Peter Lacaze said although the Group had made a strategic decision, it still remains committed to the Travel Management segment and sees it as a key part of the Groups activities.
... we remain committed to the business and to the servicing our corporate and government customers with a high degree of care and professional service, Mr Lacaze said.
Our review highlighted that we can continue to provide that degree of professional service with fewer staff due to the productivity efficiencies we have been able to realise as a result of the completion of the merger integration activities.
The company expects restructuring to be completed by 31 December this year and said trading for May and June were in line with expectations.
Source = e-Travel Blackboard: N.J