Kuoni is to cut jobs group-wide in a bid to cut costs by 5% a year over the next three years.

The group said the majority of jobs will be lost through natural wastage but admitted some redundancies are likely as a result of groupwide synergies. The move comes ahead of a predicted drop in bookings this year.

Announcing a three-year investment programme of £63 million, the company said: “The cost savings will mean a reduction in workforce numbers. As in the past, this should largely be achieved through natural attrition. For the few exceptions, Kuoni will be devising socially-acceptable solutions for the employees concerned.”

The investment plan is aimed at increasing differentiation of Kuoni’s products, improving electronic distribution, standardising booking systems group-wide, developing staff skills and reducing costs. It will launch its first worldwide communications campaign.

New chief executive Peter Rothwell, former deputy chief executive of the merged TUI Travel group, said the group would report total turnover of £2.9 billion for 2008 – 3.3% up on the previous year, with profits in line with expectations.