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P&O to axe over 600 jobs
Over 600 jobs look set to be lost at P&O Ferries as the company struggles to compete against the low cost airlines. A fall in passenger numbers has led the company to propose reducing capacity on the Dover-Calais route. Last week P&O revealed that passenger numbers on the route fell by 9.6% to 3.11m in the three months to September. As a result the company plans to operate six as opposed to seven multi purpose ferries from March 1 next year, with Pride of Burgundy instead operated as a dedicated freight ship. Its current dedicated freight ship European Seaway would be withdrawn from service with effect from January 1. P&O said the changes are likely to lead to 525 redundancies among seafaring staff and 96 job losses among shore staff. It added that the cost of implementing the proposed changes would be about £15 million, but that the changes were also likely to save the company about £15million annually. Russ Peters, P&O Ferries’ managing director, said: “Over the past few months, we have seen a continuation of the disappointing trends in our tourist business that we identified earlier in the year. “ He added: “We regret having to announce these cost cutting proposals but we believe they are essential if we are to address the present difficulties.” Meanwhile the company said it will launch a new high speed service between Portsmouth and Caen next summer.
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