Up to 100 staff set to go at head office in cost-cutting move
NEW GOING Places managing director Terry Fisher is to make up to 100 head-office staff redundant and revamp its pay scheme as part of a massive programme of changes.
Fisher, currently MD at sister company Travelworld, has been drafted in and given a free reign to improve the retailer’s performance.
But Going Places deputy MD Paul Evans, who has successfully renegotiated all the multiple’s deals, has resigned because he was not satisfied with the new role he was offered. Separately, MD direct distribution Jonathan Mindell and marketing and business development director Francesca Ecsery-Merrens have been made redundant. Finance director David Blackledge will leave in December and Information Technology director Stuart Walters has been replaced by outsider Mark Lawlor.
Fisher plans to make head-office staff redundant as part of a cost-cutting plan. Remaining staff will be consolidated from five buildings in Woking into just one.
He will also amend the retailer’s unpopular pay and rewards scheme, which has led to a 30% staff turnover per year. Former MD Tony Bennett slashed agents’ basic pay to £5,000 per year and made extra earnings dependant on sales. But although the average wage at Going Places is £11,000 and some staff earn considerably more, many have been penalised by the scheme and found it impossible to obtain mortgages. Going Places has lost staff to Travel Choice and Holiday Hypermarket, which are paying higher salaries.
Fisher will also consider the future direction of Matchmaker, which has been rejected by franchise partner Advantage and needs continual investment to keep pace with changes in technology.
Current UKLG distribution MDPeter Shanks, who was running Going Places, will oversee the multiple along with Travelworld and Advantage franchisees. Travelworld commercial marketing director Trevor Davis steps up to MD of the Huddersfield-based retailer.
Evans, who is rated as the best contractor in the travel industry, was told that he would stay on at Going Places for six months and then be given a senior role at sister operator Airtours. But Airtours was not specific about the position and Evans decided it was time to leave. He is on 12 months’ notice and has been tipped to move to rival Thomson, which is carrying out a massive review of its business.
Evans said:”I’m very sad to leave the Airtours group but I will be actively looking to join another company.”
Airtours UKLG chief executive Peter Rothwell confirmed the changes and said he was disappointed Evans was leaving. He said Fisher was chosen for his greater experience in retailing.
Rothwell added:”The redundancies are due to the way the business has changed rather than a reflection on individuals. Pay and rewards has worked, but will be amended because the market has changed and retail salaries have gone up.”
l Terry Fisher in as new MD and deputy Paul Evans resigns. Other directors made redundant.
l Up to 100 head-office staff to go and the rest consolidated into one office in Woking.
l Pay and rewards scheme to change after 30% staff exodus.
l Matchmaker system under review to ensure it keeps pace with changes in technology.