According to the latest Plimsoll Analysis, nearly 7,000 jobs will be lost over the next 12 months as travel companies consolidate and cut costs.
Plimsoll claims three-quarters of the 1,000 companies analysed will need to reduce their head count, meaning up to 6,945 jobs will go, with over 600 jobs being slashed by one of the biggest travel firms.
The analysis suggests almost a quarter of the companies surveyed are already running at a loss and 181 companies have been rated as in danger and needing to consolidate immediately.
A further 290 companies need only to tweak their business, making small but simple changes that will see them maintain their profitability and improve their stability, while 529 companies are well-equipped to see out the next 12 months in good shape and are almost certain to prosper from their weaker competitors’ demise.
Plimsoll senior analyst David Pattison said: 'The 181 companies we have identified as in danger need to act now if they are to survive.
'It is very important they review their entire business cost base and take action now to significantly reduce their outgoings.
'Whilst job losses are undoubtedly bad news for any company, such decisive action may be called for to guarantee the ultimate survival of the business, even if this means the business is 30 or 50% smaller than it was.'
See also:
Agencies ‘selling less than two years ago’ (27/05/08)
Plimsoll: recession will claim one in seven agencies (25/04/08)