Carnival announces layoffs, furloughs and salary reductions to keep afloat during cruise pause

Miami, FL, USA- November 7, 2008: Cruise ships docked in Miami port. Miami port one of the biggeest passanger port in USA. In the front of this picture the Carnival Ships. Carnival Cruise Line is the biggest cruise company in the world.
By Alexandra Coulton


Carnival Corporation has announced a slew of layoffs in a series of changes to its workforce to steady itself during the extended pause in its guest operations.

The corporation, which owns Carnival Cruise Lines, Costa Cruises, Princess Cruises, P&O, Holand America Line, Cunard and Seabourn, made the announcement during an update on additional steps it will take to strengthen its financial position during the halt on travel resulting from COVID-19 restrictions.

Carnival began pausing guest operations for its cruise lines in early March, with all of its trips suspended by 13 March.

According to the cruise giant, workforce changes have so far been placed on hold to stall the financial impact on its employees.

But with a clear end of travel restrictions still nowhere in sight, Carnival has had to resort to a combination of layoffs, furloughs, reduced workweeks and salary reductions across the company.

A Carnival spokesman declined to comment on just how many jobs will be affected by the move, but said the company is now in a period of consultation with its staff in relation to the changes.

However, a release from the company said the changes, alongside additional refinancing efforts, will save Carnival hundreds of millions of dollars a year.

“Taking these extremely difficult employee actions involving our highly dedicated workforce is a very tough thing to do,” Carnival Corporation president and CEO Arnold Donald said.

“Unfortunately, it’s necessary, given the current low level of guest operations and to further endure this pause.

“We care deeply about all our employees and understanding the impact this is having on so many strengthens our resolve to do everything we can to return to operations when the time is right.

“We look forward to the day when many of those impacted are returning to work with us and we look forward to the day, when appropriate, that once again our ships and crew are delighting millions of people at sea and we can be there for the many nations and millions of people who depend on the cruise industry for their livelihood.”

Featured image: iStock/photosvit

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