Webjet outlines near term cost saving initiatives

1 April, 2020

Webjet reported (01-Apr-2020) the following interim business initiatives to mitigate near term financial impact, expected to generate cash flow savings of AUD13 million (USD7.9 million) per month:

  • Reduced board and executive remuneration, with the MD reducing salary by 60% for 2020 and receiving no bonus for FY2020;
  • More than 440 redundancies;
  • Moving the majority of staff to four days a week;
  • Renegotiation of certain operational and technology contracts;
  • Essential capex only;
  • All non-essential spend freeze;
  • Material decline in transactional and operational expenses tied to TTV;
  • No marketing spend;
  • Closure of Online Republic Cruise and suspension of Webjet Exclusives.

Further cost reduction initiatives are available under a significantly prolonged scenario, which Webjet anticipates implementing in the event that circumstances do not improve within six months. [more - original PR]