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]