Tui Group has announced that it plans to permanently reduce its overhead cost base across the entire company by 30 per cent following the coronavirus pandemic, potentially impacting up to 8,000 jobs worldwide.

Global travel restrictions imposed following the outbreak of the pandemic have greatly impacted travel companies, with Tui having announced losses of €845.8m (£747m) in the first half of 2020, compared to €289.1m (£255m) in the previous 12 months.

Tui Group chief executive Fritz Joussen said: “Tui should emerge from the crisis stronger. But it will be a different Tui and it will find a different market environment than before the pandemic.

“This will require cuts: in investments, in costs, in our size and our presence around the world. We must be leaner than before, more efficient, faster and more digital.

“We will implement our “asset right” strategy, which we launched in 2019, even more purposefully and quickly. We will become more digital at all levels – in particular, we will accelerate the expansion of digital platforms in new markets and for our activities in the destinations.

“We are targeting to permanently reduce our overhead cost base by 30 per cent across the entire group. This will have an impact on potentially 8,000 roles globally that will either not be recruited or reduced.

“In order to return to the successful development of the past years after the crisis, we must now implement the realignment quickly.”

The announcement comes after major cruise firm Carnival UK announced yesterday that it would be commencing its redundancy programme in Southampton, potentially cutting up to 450 jobs as the company struggles to deal with the impact of the coronavirus crisis.

Tui, which is the parent company of Marella Cruises and Tui River Cruises, announced drastic changes to its 2020 holiday programme last month, cancelling all beach holidays and cruises up until June and postponing the launch of its river cruise brand until November.

Visit tuigroup.com for more information.