Jetset Travelworld Group has axed 110 jobs and will incur a non-cash impairment charge of $11 million relating to its Travel Management division.
Six out of 10 job losses will come from its corporate travel operation with the majority of other redundancies coming from its wholesale arm.
JTG this morning said underlying pre-tax profits for 2011/12 will hit between $30m and $35m, excluding the $11m and $7.5m restructuring costs. Last year the company reported a $30.7 PBT.
The restructure is expected to save the company $9m each year.
The developments follow a business review after poor trading in April and May.
JTG chief executive Peter Lacaze 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.”
JTG remained “committed to the business and servicing our corporate and government customers”.
The wholesale job losses follow the integration of Qantas Holidays and Viva! with Stella Travel Services wholesale operations.
Lacaze said it will create a “stronger wholesale business”.
More later.
