Mercury Holidays has confirmed it is in the “early stages” of a consultation with staff regarding redundancies.

The tour operator, sister company of Sunspot Tours, is cutting costs in response to the impact the Covid-19 pandemic has had on the travel industry.

Mercury said the number of redundancies planned had not yet been determined.

General manager Jon Bugeja said the company would not comment further at this ‘early stage’, adding: “As you can imagine this is an extremely sensitive process which in the interests of our staff we would prefer to keep confidential.”

The operator was originally direct-sell and started to work with agents ten years ago.