The Zurich-based tour operating group aims to save money by not replacing departing staff, but a ‘few exceptions’ will have to leave.
‘Socially-acceptable solutions for the employees concerned’ will be devised, the group said in a statement, which also included details of a CHF106m (£67m) investment over the coming three years.
In the UK, Kuoni has about 400 staff, with a further 200 employed by its specialist brands, including Kirker and CV Travel.
As well as cost reductions and the multimillion-pound investment, Kuoni aims to increase the differentiation of its products and improve distribution, as it anticipates a decline in bookings for 2009.
However, it will report ‘good financial results’ for 2008 when it presents its annual figures on 19 March.
Peter Rothwell, Kuoni Group chief executive, said: ‘Kuoni will report total turnover of CHF4,855m (£3,053m) for 2008, a 3.3% improvement on our prior-year result.
‘Organic growth amounted to 4.4%, while the net impact of currency movements eroded 7% from our turnover result. Our EBIT (earnings before interest and taxes) for 2008 will also be broadly in line with our expectations.’
Max Katz, chief financial officer, added: ‘We are deliberately forgoing any attempt to effect a short-term improvement in our results in favour of investing in our corporate future.’
Key initiatives include strengthening online distribution to reduce distribution costs; a groupwide drive to harmonise booking and inventory; and continued refinement of the modernised branding.
Kuoni will also launch its first global communications campaign to promote product lines, offers and services.
As a result of the measures, EBIT should gradually improve by CHF40m (£25m) a year in addition to expected business development by 2011.
See also:
Kuoni identifies 'explorism' trend (27/01/09)
Mascarenhas leaves Kuoni (15/01/09)
Kuoni targets lates market online (06/01/09)
Kuoni adds Swiss education specialist (23/12/08)
Nine-month earnings fall 14.5% at Kuoni UK (11/11/08)