(Reuters) – Europe’s biggest hotel group Accor (ACCP.PA) plans to cut 1,000 jobs as part of a 200 million euro (180.28 million pounds) per year cost saving plan to mitigate the impact of the coronavirus crisis.
Accor, which runs high-end chains such as Raffles and Sofitel as well as budget brands such as Ibis, said on Tuesday it will reduce its costs by 17% compared with 2019.
It will have to spend around 300 million euros to implement this plan, Financial Chief Jean-Jacques Morin said after Accor said earnings before interest, tax, depreciation and amortisation fell 153.7% year-on-year to a loss of 227 million euros as lockdown measures and border closures to tackle the coronavirus pandemic dented its business.
“It is difficult to implement cost saving measures in our industry without it having an effect on staff,” Morin added.
Accor, which said it employs a total of 18,000 people and operates more than 5,000 hotels in 111 countries, could not yet specify where the lay-offs would be, Morin said.
Global tourism revenues are expected to fall by up to $3.3 trillion due to coronavirus restrictions, a U.N. study forecasts, based on the most pessimistic scenario for the industry, with lockdown measures lasting 12 months.
However, Accor said that 81% of its hotels were now open and that it had a solid liquidity position of more than 4 billion euros at the end of June.