StockMarketWire.com - Travel hub convenience store group SSP said it could make up to 5,000 of its staff redundant due to the lingering impact of the Covid-19 crisis on demand for travel.

The roles would become redundant from within the company's head office and UK operations.

The restructure could lead to up to 5,000 jobs going 'if the pace of the recovery continues at the current level,' SSP said.

Costs associated with making the changes would be in the region of £8m-to-£10m, according to an initial assessment.

'At this stage, we have not commenced restructuring of a material scale in any other geographies due to our expectations of a more rapid recovery, the longer durations of furlough support or our contractual lay-off arrangements,' the company said.

SSP said its trading scenario and corresponding expectations for the second half of 2020 on operating profit, cash usage and monthly cash burn as set out on 3 June remained unchanged.

'We are beginning to see early signs of recovery in some parts of the world and are starting to open units as passenger demand picks up,' chief executive Simon Smith said.

'However, in the UK the pace of the recovery continues to be slow.'

'In response to this, we are now taking further action to protect the business and create the right base from which to rebuild our operations.'

'Regrettably, we are starting a collective consultation which will affect our UK colleagues.'




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