13 Apr 2020
Posted in Travel & Tourism
Cruise sector redundancies need to be expected, says GlobalData
Swedish-owned Stena Line recently announced that it plans to furlough 600 employees and make 150 redundancies across the UK and Ireland. This is a sign of things to come in the days ahead for the cruise industry, says GlobalData, a leading data and analytics company.
Ben Cordwell, Travel and Tourism Analyst at GlobalData, comments: “Making redundancies is one of the hardest decisions a company will have to make, but it is quite often the most common step for businesses in times of financial hardship. By making redundancies, companies can reduce costs and stabilize cash flows.
The current economic environment brought on by the COVID-19 outbreak has made it extremely difficult for businesses within the cruise industry to operate.
Cordwell adds: “Stena Lina are not the first company to take this step, with Virgin Voyages confirming redundancies have been made within its shore-side team in the US. More businesses will almost certainly need to take these measures in order to survive the impact of COVID-19.”
Information based on GlobalData’s report: ‘Coronavirus (COVID-19) Sector Impact: Cruises Vol. 6’