Jetset Travelworld Limited slashes QBT and wholesale staff.
Jetset Travelworld has just issued a stock market update, confirming “a reduction of approximately 110 positions across the Group”.
About 66 will go from the Travel Management segment of the business which includes QBT, while most of the other roles will be in wholesale, arising from the full integration of the operations of Qantas Holidays/Viva! with the former Stella Travel Services wholesale business.
The restructuring will deliver annual benefits of about $9 million, with one-off costs of $7.5m to be accounted for this financial year and the changes to be largely completed by 31 Dec.
Jetset Travelworld Limited also said that subject to trading in June it’s likely to record a non-cash impairment charge to intangible assets attributable to the Travel Management segment of about $11 million.
The company said that trading conditions in May were in line with expectations, but the impact of the one-off restructuring and impairment charges would see the reported profit before tax for the year to 30 Jun being below the prior year’s figure of $30.7m
“Subject to trading conditions in June meeting expectations, JTG expects to report an underlying PBT adjusted to exclude the impact of the one-off restructuring and impairment charges in the range of $30-$35 million,” the statement said.
CEO Peter Lacaze said that ongoing losses in the Travel Management segment had required a detailed review of the division.
“JTG has made a strategic decision that the Travel Management business is a key part of the Group’s activities and we remain committed to the business and to servicing our corporate and government customers with a high degree of care and professional service,” he said.
“Our review highlighted that we can continue to provide that degree of professional service with fewer staff due to the productivity efficiencies we have been able to realise as a result of the completion of the merger integration activities,” Lacaze added.
Lacaze also said that the wholesale integration would create a stronger business “and will deliver significant enhancements to the available products and levels of service to our customers”.
More information in today’s Travel Daily.