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Leaked report shows hard times ahead
MyTravel is to make 2,000 job losses, according to a report in today's
Financial Times. The FT report follows a leak from a strategic meeting
between MyTravel bosses and the group's bankers yesterday (April
2).
According to the newspaper, the aim of the cuts is to save the company
£50 million and keep it "afloat until the end of the year." As the
company announced in January, 700 jobs in the UK will be among those
to go. It is believed that the 2,000 total could also include further
UK redundancies depending on the company's performance over the
next two years.
Share slump worries
The beleaguered company has had a bad year, with regular profits
warnings and the discovery of accounting irregularities forcing
the share price down from a 12-month high of 250p to a low of 8p,
though it has staged a minor recovery in recent days to 10.75p.
The company now has a market value of £52 million compared to £1.23
billion a year ago.
The FT says analysts fear the worst for MyTravel if the war in Iraq
is prolonged. One told the newspaper: “If it goes on too long you
have to worry about what’s going to happen.”
[Source: Travelmole]
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