325 jobs axed at Thomas Cook
04.12.2011, 18:05
TRAVEL giant Thomas Cook today said more than 300 jobs are at risk at its UK headquarters in Peterborough.
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The shock for staff comes as the company is expected to announce record profits in excess of Ł50 million next month.
Despite this, the leading travel brand claims the cuts are needed to ensure future growth.
Today, employees at the site, in Coningsby Road, Bretton, Peterborough, and union representatives said they are concerned by the scale of the proposed job losses.
It is expected that a total of 325 jobs will go, the vast majority in Peterborough, when the Thomas Cook mass market tour operating business is merged with specialist division Thomas Cook Signature and the company's scheduled-air and city tour operations.
Manny Fontenla-Novoa, chief executive officer of Thomas Cook UK and Ireland, said: "Making roles redundant is always a difficult process, especially on the back of such a successful year, but as a management team we will not shy away from making challenging decisions for the future development of the company."
Staff employed at the Thomas Cook Signature call centre and their colleagues at a centre in Bradford will both work within the new merged division, but there is likely to be an overlap of responsibilities.
The re-shuffle will also see jobs overlapping among sales centre staff in Peterborough and Falkirk in Scotland, and the company has launched a 90-day consultation period to identify areas where there are too many staff doing the same jobs.
Mr Fontenla-Novoa said there was now a freeze on external recruitment and that by creating a combined Thomas Cook Holidays Division, the company would be able to take full advantage of economies of scale and efficiency.
The news is a blow to the city's image at a time when Opportunity Peterborough is going flat out to sell the benefits of moving to Peterborough to major employers.
City council leader Ben Franklin said: "A significant number of jobs are at risk and it must be a worrying time for employees.
"The council is currently working hard with Opportunity Peterborough to create new jobs, and this announcement is a disappointment."
Thomas Cook has about 1,600 members of staff in Peterborough, making it one of the city's biggest employers.
One employee, who asked not to be identified, said: "We have been told that those affected will be found other jobs, but there is a fear there won't be enough for us all."
Another added: "There have been rumours about Thomas Cook Signature being brought into the main business for a while, but it still came as a shock."
A spokeswoman for the Transport Salaried Staffs Association, which represents workers in the travel industry, said: "We are disappointed at the extent of these proposed losses and will be meeting with the company during the consultation period."