Thomson staff braced for Christmas job cuts

Thomson staff braced for Christmas job cuts

Report by STEVE JONES

THOMSON Travel Group will make sweeping changes which are expected to result in a raft of redundancies just before Christmas.

Staff face an anxious 60-day wait while 14 specially formed working parties scrutinise the business. The move follows its £1.8 billion takeover by German giant Preussag.

The move follows far-reaching proposals to merge a number of key Thomson departments with Hanover-based TUI, the tour operating arm of Preussag.

Thomson’s25-strong strategic management department, headed by John Wells, has already been disbanded with all functions relocated to Germany. Wells will leave the group at the end of January.

Thomson chief executive Charles Gurassa said: “There was no need to have two development teams for the group.”

Many other jobs are expected to be axed as Thomson and TUI integrate their aviation, marketing, contracting, hotels and information technology departments.

One Thomson source said: “Staff are wondering whether getting rid of John Wells’ department is a sign of thingsto come.”

Gurassa, who will head the aviation and marketing departments, refused to comment on possible job losses but admitted there will be “winners and losers.”

He stressed, however, that the merging of departments would not automatically result in massive job losses and does not mean all departmental functions will be based solely in either Germany or the UK.

“In marketing and contracting, staff may be based in two locations so they are close to the tour operation,” said Gurassa.

“For the next 60 days we will see how we will implement the changes.”

But he added: “I can’t say there won’t be losses.”

Thomson stressed the restructure is not about cost cutting but about realising the benefits andefficiencies of working closely with TUI.

However, merging departments, and the ability to jointly buy beds and fuel, will save millions of pounds.

Meanwhile, Gurassa has moved up to the Preussag board and hired Airtours UKLG chief executive Peter Rothwell as chief operating officer.

Preussag has confirmed it will acquire a 34.4% stake in French operator Nouvelles Frontieres for an undisclosed amount.

Further deals are expected following Preussag’s decision to sell off its heavy industry and concentrate on travel.

&#42 See Analysis, page 8

Gurassa: admitted there will be winners and losers in Thomson’s Christmas shake-up