Tui plans to sell or close its 70 travel agencies in France as it focuses on its core profitable brands and third-party distribution.
In a statement on the restructuring, Tui Group said the proposed changes were expected to allow the loss-making Tui France division to break even from 2021.
It said: “In future, Tui France will focus on the high-margin business with a few core brands. Offers that are high-volume but do not generate sufficient margins are removed from the portfolio.
“As a result, Tui France’s business volume will decline. In addition, in France, the group’s own distribution network of 70 travel agencies is to be sold or closed.”
The changes are expected to result in the loss of 583 jobs in Tui’s shops, which equates to about 60% of its French workforce. Discussions have begun with employee representatives.
The statement added: “In the wake of the corona pandemic, the situation for Tui France has again deteriorated significantly. A far-reaching package of measures is now needed to create a perspective for the company within the group.
“In May 2020, Tui announced that as a consequence of the corona crisis, all business operations would be reviewed in order to steer the group as a whole safely through the crisis and provide it with a stable future. Subsidiaries and regional entities that had been loss-making in recent years should be restructured.
“Overall, the Tui Group aims to reduce its overhead cost base by 30% worldwide.”
