Debt-laden Eurotunnel 'to shed tenth of staff'
Debt-laden Eurotunnel is set to announce plans to shed about a tenth of its workforce as part of a life-saving overhaul, it was reported today.
The company is said to be close to concluding talks with unions over a voluntary redundancy programme that could see about 250 jobs go in the UK.
A further 100 employees could choose redundancy in France, according to the Financial Times. The firm employs about 3,200 staff in the UK and France.
A spokeswoman for the company said Eurotunnel had never said how many jobs would go as a result of its restructuring, and would not comment on the figures reported today.
She said: “Staff reductions at this moment in time are just natural wastage and retirements. There are no specific figures.”
Eurotunnel, which is struggling to stem declines in revenues and passenger traffic, yesterday responded to intense competition from ferries and low-cost airlines by slashing prices on its cross-Channel routes.
Passengers travelling via the Channel Tunnel by car will pay as little as £49 (€73) for a single trip if they book in advance and avoid times of peak travel such as weekends.
The move is designed to increase flexibility and tempt more people to use the Channel Tunnel, helping to boost revenues at a time when Eurotunnel is seeking a rescue deal with its lenders to avoid bankruptcy.
In April, the tunnel operator said annual revenues from its shuttles fell 7% at constant exchange rates to £285m (€425m) as a price war with rivals took its toll. It reported losses of £570m (€850m) against £1.3bn (€1.94bn) last time.
Eurotunnel, which has £6.2bn (€9.2bn) of debt, is pinning its hopes of survival on discussions with lenders about a debt restructuring.
