Ebookers cuts jobs in Europe, India

Tuesday, 11 May 2004, 19:30 IST
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LONDON: High-profile online travel agency Ebookers is cutting more than 200 jobs in Britain and Europe and another 70 in India, where it was one of the pioneers in outsourcing call centres. The group reportedly began consultations on the job cuts six weeks ago and expects most to have been implemented by the end of this month. It plans to save £2.5 million, as a result, over the rest of this year. Chairman and chief executive Dinesh Dhamija said the cuts came as a result of the group's success in moving to 'offline' travel players with good product content and converting them on to the Internet. Dhamija told reporters: "Taking advantage of automation and efficiency gains, we are reducing our European headcount by over 200. Jobs currently outsourced to Tecnovate, our Indian business process outsourcing facility, will be reduced by 70." He added: "As processes are automated and online sales grow, we intend to continue to make further reductions and efficiencies." He has targeted operating costs of 8.5 per cent of turnover compared with last year's 12.7 per cent. Only last August, Ebookers said it planned to treble the size of its Indian back-office and call-centre business, moving it from a cost centre to a profit centre as it took on more work for third parties. That would have boosted staff in India from 640 to more than 2000. The Indian operation costs about a quarter of the running costs of the equivalent British business. Ebookers saw gross sales grow by four per cent to £160 million in the first quarter, with 23 per cent organic growth. The proportion of sales coming from sources other than cheap flights improved from 29 per cent to 40 per cent over the last 12 months. Dhamija said: "With strong online growth, increasing high-margin non-air sales and the cost reductions detailed today, our business model is performing well and we continue to have a positive outlook for 2004."
Source: IANS
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