Virgin Atlantic will cut another 1,000 jobs as it struggles to recover from the coronavirus pandemic.
The British airline based in Crawley, West Sussex, is reportedly set to announce the big cull as early as tomorrow.
It comes just hours after Sir Richard Branson's firm approved a £ 1.2 billion bailout package by the High Court.
And it's been less than four months since Virgin Atlantic announced it would close its Gatwick headquarters and cut 3,150 jobs.
The news means the airline's workforce has almost halved from 10,000 since the Covid-19 strike.
The British airline based in Crawley, West Sussex, is reportedly set to announce the big cull as early as tomorrow
It comes just hours after Sir Richard Branson's (pictured) company received a £ 1.2 billion bailout package approved by the creditors
Virgin Atlantic didn't release numbers for the number of employees standing in front of the trunk, but a source told Sky News it would be over 1,000.
The company, founded by Sir Richard in 1984, has been hit by the shortage of international travel since countries introduced bans earlier this year.
How did Richard Branson make his money?
Richard Branson is the founder and chairman of Virgin Group, which started with Virgin Records in 1972 and now employs more than 70,000 people in 35 countries.
His empire included airlines, radio stations, nightclubs, a Formula 1 team, and health clubs – and the tycoon is valued at more than $ 4 billion.
Branson started Student magazine in the 1960s at the age of 16, which sold nearly $ 8,000 worth of advertising in its first issue. The ambitious young businessman dropped out of school to focus on publishing.
In 1969 he started his record business and founded Virgin Mail Order Records. According to Investopedia, he founded the music label Virgin Records in 1972 with the profits.
His success was due in part to his willingness to sign controversial artists like the Sex Pistols with other well-known artists like Ozzy Osbourne and The Rolling Stones at the time.
In 1979, Branson bought Necker Island for $ 180,000 and in 1984 founded one of its best-known companies, Virgin Atlantic. The airline achieved success due to its in-flight creative comfort.
After selling Virgin Records for $ 1 billion to keep Virgin Atlantic going, Branson was knighted in 2000 and remains one of the UK's best-known entrepreneurs.
Last week, the airline's creditors voted to approve a rescue package that the company said is a "significant milestone in securing its future."
At a remote hearing in the High Court yesterday, Snowden Justice approved the restructuring plan, a step in the process for Virgin Atlantic to implement the deal.
The judge said this will allow the airline to put the plan into effect by Friday. The £ 1.2 billion bailout deal announced in July only affects private funds.
It also includes a £ 200 million injection of cash from founder Sir Richard Branson's Virgin Group.
David Allison QC for Virgin Atlantic told the court that there were four creditors' meetings last week, with three 100 percent in attendance and 100 percent approved.
In the fourth case, the deal was approved by the vast majority of those present and eligible voters. Allison said it was "in the best interests of all parties" to reach an agreement.
A Virgin Atlantic spokesman said in a statement: "By reaching this significant milestone, Virgin Atlantic will be able to rebuild its balance sheet, restore customer confidence and safely take passengers back to the skies once they are ready to travel." . " A US procedural hearing is expected to follow today.
Virgin Atlantic was asked to comment on the downsizing.
Costa said earlier today 1,650 employees are at risk of layoffs as they could cut costs amid continued uncertainty about when trade will fully recover.
She told staff on Thursday that she had launched consultations that could affect more than a tenth of the roles.
The move comes a week after rival Pret A Manger announced it had cut 2,800 rolls as part of a reorganization of its UK business.
During the pandemic, Costa closed almost all 2,700 UK stores for six weeks, but has since reopened around 2,400 stores.
The Coca Cola-owned chain said trade is returning after being boosted by the government's VAT cut on food and soft drinks and the recent Eat Out to Help Out program.
The proposed downsizing, however, was due to "high uncertainties about when trade will recover to pre-Covid levels".
Cafe chain Costa said 1,650 employees are at risk of layoffs as they seek to cut costs amid ongoing uncertainty about when trade will fully recover from the pandemic
Neil Lake, Managing Director of Costa Coffee UK and Ireland, said: & # 39; Today's announcement to our store teams has been an extremely difficult decision.
“Our baristas are at the heart of the Costa business, and I'm really sorry that many are now faced with uncertainty after today's news.
& # 39; We had to make these tough decisions to keep the company safe and to ensure we were able to secure as many jobs as possible for our 16,000 team members while being more prepared for future growth.
& # 39; As a proud member of UK Main Street, we remain committed to the role Costa is playing in supporting the country's economic recovery, but today I would like to say a big thank you to all of our team members affected by this announcement and we will Support you during this process. & # 39;
The company said the review of roles in stores looked at a number of options before making the difficult decision to launch a consultation.
Costa made the difficult decision to freeze all Support Center salary increases and cut all non-essential expenses.
It added that whenever possible, Costa will seek to identify these at-risk alternative roles within the company and that support will be given to those who leave the company to help transition to new employment.
Coffee and sandwich chain Pret a Manger has confirmed that it has removed 2,800 rolls from its stores
According to new figures, around 6% of the UK workforce switched jobs in the three months following the pandemic
Around six percent of the UK workforce switched careers in the three months following the pandemic, government figures show.
The Office for National Statistics (ONS) stated that 6.1 percent of employees switched to a new job in the period from April to June compared to the previous quarter.
Statisticians said most people who changed jobs in the post-pandemic quarter also switched industries as large parts of the economy were temporarily closed.
The figures showed that the proportion of people who changed jobs was slightly higher than in the same period last year, when 5.7 percent of people changed roles.
The ONS said the "limited" increase in job changes was "likely to reflect the impact of the government's job security systems."
In the report, the ONS said: “Therefore, the change in occupation could occur more frequently as the employment benefits dissolve.
"As the picture evolves, it will be possible to better understand how job movements have affected the labor market."
The new figures showed that 52.5 percent of workers who changed their jobs also changed their main industry and moved into completely different sectors.
It is said that the professional and technical roles of employees – which include a range of academic, teaching, and administrative roles – have seen the largest increase, accounting for 21.2 percent of those who have switched jobs.
Earlier this month, the ONS also announced that around 730,000 UK workers have been struck off the payrolls of UK companies since March when the coronavirus lockdown began.
Last week, the coffee and sandwich chain Pret a Manger cut 2,800 rolls from its stores.
In a statement, managing director Pano Christou said the coronavirus pandemic had "taken Pret nearly a decade of growth".
He added that the popular café franchise "managed to protect a lot of jobs" but "is disappointed that we lost so many colleagues".
Mr Christou said, “Although we are now seeing a steady but slow recovery, the Pret pandemic has grown for nearly a decade.
“We've managed to protect many jobs by making changes to the way we run our business and the hours we ask team members to work.
A report by the CBI found that the employment record, which measures the number of retailers firing and hiring in the past year, had fallen from minus 20 percent in May to minus 45 percent in August.
The numbers, which are their lowest since February 2009, also showed an unexpected collapse in retail sales in August, the balance falling from 4 percent in July to minus 6 percent.
It was revealed that the retail bloodbath has claimed or threatened at least 41,391 jobs in the UK since the lockdown was introduced in late March.
It follows growing warnings of mass unemployment when the government's vacation program ends in October.
The retail sector is among those that have relied heavily on the system since the lockdown forced much of the main street to close.
Non-essential stores have reopened since June, but many retailers have had to close stores and downsize as shoppers continue to avoid the main drag.
Marks & Spencer added to the pain in the retail sector, announcing 7,000 job losses last week.
The London-based retail giant announced that the bulk of the cuts would be made in its stores, affecting around 12 percent of the 60,000 employees in the stores as well as a smaller number of support center and regional management staff.
M & S, which employs 85,000 people worldwide, anticipates that voluntary departures and early retirement will shed a “significant” number of roles.
Alpesh Paleja, chief economist at the CBI, said: “The vacation program has been shown to be effective during the pandemic at isolating workers and businesses in some of the hardest hit sectors. However, these results reinforce fears that many job losses have been delayed rather than avoided. & # 39;
He added: “Retail trading conditions remain difficult, even amid a slow return of business.
"Businesses will be wary of a deterioration in household incomes and the risk of further local bans that may hit them for a second time."
The visitor frequency of all retail locations last year around this time was 68 percent. This is around 10 percent at the beginning of April
The survey also found that retailers polled for the report expect jobs to decline further, with a balance of minus 52 percent for the next quarter.
They also showed that retailers expect sales to decline further in September, with a balance of minus 17 percent.
However, the official numbers delivered some good news for the competitive retail sector last week. They showed that retail sales in July were up 3.6 percent compared to June and are now 3 percent above pre-pandemic levels.
More than 187,000 people have been laid off or have been laid off in a number of industries in the past few months as the pandemic is taking a massive toll on the country's economy.
Last month it was revealed that Debenhams was slating 2,500 jobs in its stores and warehouses to cut costs after sales fell during the coronavirus lockdown.
It also revealed that around 14,000 jobs could also be on the sidelines at Debenhams, and plans to liquidate the business in the event that other options to save the company – such as the sale – fail.
As part of a management restructuring process, the department store is scrapping the roles of sales manager, visual merchandise manager and sales support manager.
The move, first reported by RetailWeek, comes four months after Debenhams' administrative breakdown.
Earlier this month, it was announced that Debenhams would cut 2,500 jobs in its stores and warehouses
Meanwhile, it was reported that 1,300 jobs at British retail giant John Lewis were affected this month after eight retail locations announced in July that they were threatened with closure.
The retailer said the affected stores were "already financially challenged before the pandemic and a number of factors, including the shift towards online shopping that Covid-19 has accelerated, will have caused those stores to cease in the future could be economical ".
In a statement, the company said: “This is a very sad opportunity that we would never have imagined when we opened these stores.
“We expected to continue trading in these locations for many years to come, but they were financially challenged prior to the pandemic and we couldn't find a way to change that.
"We are grateful to those who have shown their support since the announcement of the planned closure last month and for the incredible professionalism our partners have shown – they remain our top priority and will be fully supported in the coming weeks."
Earlier this year, more than 1,800 jobs were lost at Oasis and Warehouse after administrators said they couldn't save the company behind the brands.
In a statement, Deloitte joint administrator Rob Harding blamed coronavirus for the decline in business, saying, “Covid-19 has brought extraordinary challenges that have devastated retail.
"It is with great sadness that it is not possible to announce a sale of the business, and we are announcing so many layoffs today."
Earlier this year, the administrators of Oasis and Warehouse blamed the coronavirus for the suffering of the chains
The Bureau of National Statistics said 730,000 people have been struck off the payroll since the crisis began in March and forecast a total of 6.5 million jobs lost in the UK as a result of the disaster.
Government figures also show that 6.1 percent of the UK workforce changed jobs in the three months following the pandemic.
Statisticians said most people who changed jobs in the post-pandemic quarter also switched industries as large parts of the economy were temporarily closed.
The government's vacation program for workers expires in October, and although it introduced the return to work bonus that offers companies £ 1,000 for every employee on leave a company keeps, there are fears that thousands of retail jobs will be cut .
How more than 190,000 jobs have been lost or at risk in the coronavirus pandemic
- September 3 – Virgin Atlantic – 1,000 *
- September 3 – Costa – 1.650
- September 2 – Heathrow – 1,200
- August 25 – Cooperative Bank – 350
- August 20 – Alexander Dennis – 650
- August 18 – Bombardier – 95
- August 18 – M&S – 7,000
- August 17th – easyJet – 670
- August 17th – Jet2 – 102
- Aug 16 – Debenhams – 14,000 endangered
- August 14 – John Lewis – 399 Endangered
- August 14th – Yo! Sushi – 250
- August 14 – River Island – 350
- August 12 – NatWest – 550
- August 11th – InterContinental Hotels – 650 worldwide
- August 11 – Debenhams – 2,500
- August 7 – evening standard – 115
- August 6 – Travelex – 1,300
- August 6 – Wetherspoons – 110 to 130
- August 5 – M & Co – 380
- 5 August – Arsenal FC – 55
- Aug. 5 – WH Smith – 1,500
- August 4th – Dixons Carphone – 800
- August 4 – Pizza Express – 1,100 at risk
- August 3 – Hays Travel – up to 878
- August 3 – DW Sports – 1,700 at risk
- July 31 – Byron – 651
- July 30th – Pendragon – 1,800
- July 29 – Waterstones – unknown number of functions at headquarters
- July 28 – Selfridges – 450
- July 27 – Oak Furnitureland – 163 Endangered
- July 23 – Dyson – 600 in the UK, 300 overseas
- July 22 – Mears – less than 200
- July 20 – Marks & Spencer – 950 Endangered
- July 17 – Azzurri Group (owns Zizzi and Ask Italian) – up to 1,200
- July 16 – Genting – 1,642 endangered
- July 16 – Burberry – 150 in the UK, 350 overseas
- July 15 – Banks Mining – 250 Endangered
- July 15 – Buzz Bingo – 573 Endangered
- July 14 – Vertu – 345
- July 14th – DFS – up to 200 endangered
- July 9 – General Electric – 369
- July 9 – Eurostar – unknown number
- July 9 – Boots – 4,000
- July 9 – John Lewis – 1,300 Endangered
- July 9 – Burger King – 1,600 endangered
- July 7 – Reach (owns Daily Mirror and Daily Express) – 550
- July 6 – Pret a Manger – 1,000 endangered
- July 2 – Casual Dining Group (owns Bella Italia and Cafe Rouge) – 1,909
- July 1 – SSP (owns Upper Crust) – 5,000 at risk
- July 1 – Arcadia (owns TopShop) – 500
- July 1 – Harrods – 700
- July 1 – Virgin Money – 300
- June 30 – Airbus – 1.700
- June 30 – TM Lewin – 600
- June 30 – Smiths Group – "some job losses"
- June 25 – Royal Mail – 2,000
- June 24th – Jet2 – 102
- June 24th – Swissport – 4,556
- June 24 – Crest Nicholson – 130
- June 23 – Schuhzone – unknown number of workstations in the headquarters
- June 19 – Aer Lingus – 500
- Jun 17 – HSBC – UK jobs unknown, 35,000 worldwide
- June 15 – Jaguar Land Rover – 1,100
- June 15 – Travis Perkins – 2,500
- June 12th – Le Pain Quotidien – 200
- June 11 – Bombardier – 600
- June 11 – Johnson Matthey – 2,500
- June 11 – Centrica – 5,000
- June 10 – Quiz – 93
- June 10 – The restaurant group (owns Frankie and Benny & # 39; s) – 3,000
- June 10 – Monsoon Accessorise – 545
- June 10 – Everest Windows – 188
- June 8 – BP – 10,000 worldwide
- June 8 – Mulberry – 375
- June 5th – Victoria's Secret – 800 in danger
- June 5 – Bentley – 1,000
- June 4th – Aston Martin – 500
- June 4 – Lookers – 1,500
- May 29 – Belfast International Airport – May 45
- May 28 – Debenhams (in the second announcement) – Hundreds of jobs
- May 28 – EasyJet – 4,500 worldwide
- May 26 – McLaren – 1,200
- May 22 – Carluccio – 1,000
- May 21 – Clarks – 900
- May 20 – Rolls-Royce – 9,000
- May 20 – Bovis Homes – unknown number
- May 19 – Ovo Energy – 2,600
- May 19 – antlers – 164
- May 15 – JCB – 950 Endangered
- May 13 – Tui – 8,000 worldwide
- May 12 – Carnival UK (owns P&O Cruises and Cunard) – 450
- May 11 – P&O Ferries – 1,100 worldwide
- May 5 – Virgin Atlantic – 3,150
- May 1st – Ryanair – 3,000 worldwide
- April 30 – Oasis Warehouse – 1,800
- April 29 – WPP – unknown number
- April 28 – British Airways – 12,000
- April 23 – Saffron Seats – 400
- April 23 – Meggitt – 1,800 worldwide
- April 21 – Cath Kidston – 900
- April 17 – Debenhams – 422
- March 31 – Laura Ashley – 268
- Mar 30 – BrightHouse – 2,400 Endangered
- March 27 – Chiquito – 1,500 endangered.
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