Australia's Flight Centre sheds 6,000 workers globally

Business | 26 Mar 2020 12:47 pm

Thousands more Australian workers have been stood down, as Flight Centre Travel Group and retail group Premier Investments shut stores in response to the coronavirus pandemic.

Flight Centre also has operations in Hong Kong.

A company on the frontline of the travel industry downturn, Flight Centre has announced that 6,000 support and sales workers will be made redundant or temporarily stood down globally, including 3,800 in Australia, ABC News reports.

"A high percentage of the work which people normally perform has stopped and maintaining staff and shop numbers at pre-virus levels has become unsustainable," it said in a statement to the Australian stock exchange.

The cuts represent 30 percent of the travel group's workforce of 20,000 and come as it prepares to shutter further shopfronts.

Flight Centre said it had spoken to other potential employers to create a pool of 10,000 sales and call center vacancies for stood-down employees.

The company had previously announced it was shutting down 100 stores in Australia over the next year and had suspended its shares from trading on the ASX.

Today, Flight Centre said it had fast-tracked store closure plans globally and would be able to close around 30 percent of its outlets in Australia over the next few months.

Flight Centre Group, Magaing Director, Graham Turner said in a statement to the ASX, the group is  dealing with unprecedented restrictions and extraordinary circumstances that are having a significant impact on our customers, people, suppliers and all other stakeholders.''

The group is also "making other changes to reduce costs, preserve cash and help the company overcome the current challenges that our industry and almost all businesses now face.''-ABC News/The Standard. Photo: ABC News 

 

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