Tour operator, Thomas Cook, has announced a £425 million fundraising with shareholders in a bid to cut debt.
The firm, based in Peterborough, has also revealed details of a £1.6billion refinancing plan. The news comes at a time when trade is "encouraging" and the travel agent say they have seen a 10% reduction in the number of holidays left to sell compared with last year.
Under new chief executive Harriet Green, Thomas Cook also said it cut losses to £275.6 million for the seasonally quieter half year to March 31.
Around 2,500 jobs are to go at travel firm Thomas Cook – many of which will be cut from the firm's head office in Peterborough.
The job losses, alongside the closure of 200 high street stores, are part of the next phase of a three year transformation plan for the company, which aims to cut costs and reduce financial losses.
The general secretary of TSSA – the union for people in travel and transport, Manuel Cortes, believes cuts aren't the answer.
Peterborough-based Thomas Cook slumped to a £590 million loss in its last financial year and is working on plans to slash costs.
As well as shutting stores, the UK's second-biggest travel company has trimmed its airline fleet and sold off hotels after it was forced to turn to its banks for an additional £200 million of loans in 2011.
Following the announcement by Peterborough-based holiday firm, Thomas Cook, that the company plans to axe 2,500 jobs, the TSSA travel union said it's 'shocked and angry' at the scale of job losses.
Peter Fankhauser, Thomas Cook UK and Ireland’s CEO, said: “Thomas Cook is a much loved brand that needs to make the proposed changes to secure our future and provide continued employment for many thousands across the UK and better meet the needs of our customers going forward.
"It is essential that we operate with the right number of people as we move forward into the next era for our company.
“It is never easy to make decisions that impact directly on our people, but we also owe it to our customers to operate efficiently and ensure that when they book their holiday with us our administrative costs are as low as possible.
“We firmly believe these proposals will mean a better – more profitable – Thomas Cook that continues to be a major employer in the UK and offer the widest range of holidays for travellers and voyagers in the future.
"We are already consulting with our Unions and employee representative bodies to minimise the impact of these changes and I am speaking personally to all employees today to provide information and support through this period of consultation."
Thomas Cook has entered a 90-consultation with some of its UK employees on a three-year programme to "transform its operations".
The consultation will consider plans to:
- Close 195 high street stores, whilst retaining 874 outlets on British high streets
- Place a number of administrative and managerial roles at risk, at Head Offices in Peterborough and Preston, whilst proposing the closure of its Accrington office
- Change some terms and conditions in order to make further efficiencies, thereby safeguarding additional roles
- Thomas Cook currently employees 15,500 people in the UK and it is anticipated that approximately 2,500 full-time roles will go if the proposed changes go ahead.
Holiday firm Thomas Cook, which is based in Peterborough, today announced plans to axe 2,500 UK jobs and warned of some store closures under a group-wide restructure.
Thomas Cook has seen a boost in sales in summer holidays as people try to escape the gloomy British weather.
The UK's second biggest travel company has its head office in Peterborough.
The group, which was recently forced to turn to its banks for an additional £200 million of loans, reported an underlying operating loss of £26.5 million in the three months to June 30 due to tough trading conditions.