Thomas Cook forced to axe hundreds of jobs

Hundreds of people have lost their jobs at Thomas Cook headquarters in the UK due to the economic downturn and the effects of the volcanic ash cloud earlier this year. 126 people that have lost their jobs were in management roles.

Profits at Thomas Cook were down £4 million this year compared to last year's figures. Thomas Cook knew that the economic downturn would have an effect on sales, but they were hit harder than they first anticipated.

The chief executive of Thomas Cook commented on the decision to axe the jobs: "Because we're not 100 per cent sure how things will turn out, all those measures that we've undertaken means that we're in good shape should it get worse, and if it doesn't then we're in even better shape."

In addition to axing hundreds of jobs, Thomas Cook is taking steps to reduce their annual costs in the UK, including undertaking renegotiations with suppliers and overhauling their IT operations.

Many UK tour operators have seen a drop in sales this year and some smaller companies have gone bust, particularly in the wake of the volcanic ash crisis. Thomas Cook incurred over £52 million following the closure of airspace in April.

In spite of the setbacks, Thomas Cook has made positive business ventures this year, including merging with The Co-operative Group in October and purchasing 12 new Airbus A320s, which will eventually replace the current aircraft in the Thomas Cook fleet.

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