P&O ferries makes more than 1,100 workers redundant amid coronavirus crisis
P&O Ferries is set to make around 1,100 workers redundant as the coronavirus crisis continues to wreak havoc on businesses.
The job cuts mean the 180-year-old firm is set to lose about a quarter of its 4,000-strong workforce, as part of plans to make the English Channel ferry operator "viable and sustainable".
Brits have been forced to cancel and reschedule their holidays amid the health pandemic, sparking misery and job cuts across the whole of the travel industry.
P&O Ferries has significantly reduced its number of ships in operation following the outbreak, with the cruise line now running only 15 of its 21 vessels.
Some of its routes have continued to operate as passenger boats, while other lines have been turned into freight services.
The company has also furloughed 1,400 workers under the coronavirus job retention scheme.
Businesses in turmoil in 2019 and 2020
P&O Ferries is the latest in a long list of businesses to be facing trouble.
In 2019 and so far in 2020 we've seen:
- Jamie Oliver's "Jamie's Italian"chain go bust, alongside his Fifteen and Barbecoa restaurants
- Links of London go into administration putting 350 jobs at risk
- Marks and Spencer close 35 more stores as it pushes forward with plans to axe 145 shops across the UK
- Dozens of Monsoon and Accessorize stores close
- Struggling shoe shop Office has said it "could close shops" as part of restructuring plans
- Fears Pizza Express could be next to go into administration as it "brings in emergency advisers"
- Hairdressing chain Supercuts went into administration in October 2019 putting 1,200 jobs and 220 salons at risk
- Maternity and baby retailer Mothercare collapsed into administration in November 2019 after 58 years on the high street, putting 2,500 jobs at risk
- Department store chain Beales went into administration in January 2020 with 23 shops and 1,052 jobs at risk
- High end fashion brand Ted Baker said it plans to axe 160 jobs in February 2020
- Mobile phone retailer Carphone Warehouse said in March 2020 that it'll close all 531 standalone stores in April
This is where the government covers 80 per cent of the wages of staff who are currently unable to work, up to £2,500 a month.
The newly announced job cuts will be made across the UK and Republic of Ireland, and is separate to the number of workers already furloughed.
It's possible for a company to still make staff redundant while they're on furlough.
P&O, which is owned by Dubai-based company DP World, says it will now start a consultation process with affected staff.
In an update today, a spokesman for P&O Ferries said: "Since the beginning of the crisis, P&O Ferries has been working with its stakeholders to address the impact of the loss of the passenger business.
"It is now clear that right-sizing the business is necessary to create a viable and sustainable P&O Ferries to get through Covid-19.
"Regrettably, therefore, due to the reduced number of vessels we are operating and the ongoing downturn in business, we are beginning consultation proceedings with a proposal to make around 1,100 of our colleagues redundant."
P&O currently operates routes to the UK, France, Belgium, Italy and the Netherlands.
The struggling firm had been scrambling for a £250million rescue deal to keep it afloat, including a £150million cash injection from taxpayers - but it's understood this wasn't granted.
P&O Ferries delivers around 15 per cent of goods being imported into the UK and accounts for more than half of the products carried between Dover and Calais.
P&O Ferries isn't the only business to be suffering - Debenhams has just announced it's closing another five stores.
Meanwhile, Cath Kidston has closed down all 60 of its shops, Animal has shut 21 stores and fashion giants Oasis and Warehouse have collapsed into administration.
And in March, Laura Ashley was forced to shut down 70 stores.