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As the travel industry draws to a standstill, tourism deal provider Helloworld (ASX: HLO) is slashing jobs to keep its costs down while CEO and executive director Andrew Burnes will forego his salary for the next three months.
All the cost-cutting and cash preservation measures being put in place are expected to reduce monthly outlays by 80 per cent.
The company announced today it would be actioning 275 redundancies in various countries at an estimated cost to the business of $1.4 million.
Today the group has also initiating the stand down of approximately 1,300, or 65 per cent of its workforce around the world. These will begin at 5pm tomorrow and last for an initial period of 10 weeks to 31 May 2020.
All remaining personnel will be offered reduced working hours, which will be assessed further depending on work volume in the weeks and months ahead.
As part of its cost-cutting initiatives, Helloworld is in the process of re-negotiating rents with its major landlords who have agreed to more favourable terms over the next six to nine months.
For its 2,500 network members around Australia and New Zealand, membership and marketing fees have been frozen for six months.
All discretionary expenditure has ceased along with marketing and advertising, while major project expenditure has been materially curtailed or put on hold.
HLO has also welcomed stimulus packages in Australia and New Zealand, and will draw on all available government assistance in both countries as well as elsewhere to support the business and personnel.
Elsewhere in the travel agency, Webjet (ASX: WEB) and Flight Centre (ASX: FLT) announced suspensions from official quotation today.
Updated at 10.21am AEDT on 23 March 2020.
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