Thomas Cook has cut 500 jobs in the UK as part of a major business overhaul.
The operator said the cuts, made over the last two months, have all been at its head office.
Chief executive Manny Fontenla-Novoa said they included 126 management roles.
He stressed that the cuts had not impacted front line agency staff or overseas reps.
Thomas Cook today reported pre-tax profit of £41.7m for the year to September, compared with £45.1m the previous year.
Revenue was down 4% to £8.9bn.
The operator said trading conditions in the UK had been tougher than expected.
“We recognised at the outset that 2009/10 would be demanding given the uncertain economic outlook and, accordingly, we took early action to deal with the challenges,” said Fontenla-Novoa.
“While we made good progress in many of our operating segments and delivered a strong improvement in operating cash flow, trading in the UK was even tougher than anticipated.”
Alongside the job cuts and business restructure, Thomas Cook hopes to cut its costs further through a recent revamp of its IT operations and renegotiations with suppliers.
The operator aims to cut its annual costs by up to £50 million in the UK.
Chief executive Manny Fontenla-Novia said: “I am confident that the actions we have now taken to reinforce the UK business, together with continued progress on our strategic initiatives, leave us well positioned to make progress in the current year.”
He said winter and summer bookings were encouraging.
“Winter bookings have got off to a good start and, although early in the cycle, summer bookings are developing well,” he said.
By Bev Fearis
