Helloworld to stand down 65 per cent of workforce, CEO to take no salary

Helloworld to stand down 65 per cent of workforce, CEO to take no salary

Helloworld Travel Limited has announced further actions to mitigate the impact of the unprecedented and rapidly evolving COVID-19 landscape.

The company is actioning 275 redundancies in various countries at an estimated cost to the business of $1.4 million.

Helloworld will also stand down approximately 1,300 or 65 per cent of its group workforce across all countries, commencing 5pm on Tuesday for an initial period of 10 weeks to 31 May 2020.

All remaining personnel will, with immediate effect, be offered reduced working hours and Helloworld said this will be further assessed depending on work volumes in the coming weeks and months.

The company also noted that personnel made redundant or stood down will have access to the enhanced assistance schemes available in Australia or their country of employment.

Following initial measures announced last week, Helloworld’s CEO and managing director, Andrew Burnes, along with the rest of the company’s executive team, will now take no salary for the next three and half months to 30 June 2020.

Direct reports to Helloworld’s CEO will have a further 15 per cent reduction for the same period, making the total reduction 40 per cent.

Helloworld said it has or is in the process of renegotiating rents with its major landlords, who have agreed to “more favourable terms” over the next six to nine months.

The company has also frozen membership and marketing fees for all network members for a six-month period from April 2020 to September 2020 to assist its 2,500 network members around Australia and New Zealand.

Helloworld added it was working with members to assist in access to the various national and state government initiatives announced for small- to medium-sized businesses over the last two weeks.

In further measures to mitigate the impact of the COVID-19 outbreak, Helloworld has ceased all marketing and advertising activity until further notice, and major project expenditure has been “materially curtailed or put on hold”.

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