LUNN Poly has scrapped educationals, severely restricted recruitment and cancelled an overseas conference as part of a major cost-cutting exercise.
The move follows a dismal year for parent Thomson Travel Group which has seen profit forecasts for the year plummet by £50m to £85m.
Thomson’s 800-strong agency chain is now trying to recoup some of the lost cash by keeping expenditure to a bare minimum.
Lunn Poly managing director Nigel David denied the strategy was a damage-limitation exercise but admitted the multiple has also suffered.
“We have to recognise it’s been a tough year and Lunn Poly has not been immune from that,” he said. “It’s been a group issue.”
Letters have been sent to operators due to take Lunn Poly agents on educationals telling them all trips are off. Departing staff are only being selectively replaced while an overseas conference due to take place in Corfu in November, which it is thought would have cost around £400,000, has also been axed.
Staff have even said the cost cutting involves a stop on stationary orders unless absolutely necessary while no Christmas parties have been planned.
“We are doing everything we can to maximise the profit for this year,” said David. “That is the key business priority.” He added there would be a “prudent management of staff”.
David said the educationals have been “deferred” so staff can remain in the shops and concentrate on selling. He added a conference would be held early next year.
“We must make sure staff are switched on, we have competitive offers and good point-of-sale material.
“We are simply adopting good business practice and are going to sell like mad.” He added that a millennium party would be held for staff.
David declined to reveal how much he was looking to save.
Meanwhile, Thomson is completing an 18-month review of its direct businesses.
It is believed that Manchester-based Portland Direct, its national sales office, also in Manchester, and Birmingham-based Thomson Direct will be consolidated in Glasgow.
Lunn Poly is recruiting for a combined marketing and buying head.
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