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Flight Centre To Stand Down 3,800 Workers As Travel Bans Cripple Industry

Flight Centre has announced it will temporarily stand down 3,800 Australian workers during the coronavirus pandemic.

The company said in a statement to ASX on Thursday it would cut close to 6,000 support and sales roles globally, either temporarily or permanently.

Flight Centre said it intended to "bring them back to work as soon as the current travel bans and trading restrictions are lifted".

It said the job losses were due to lack of demand after the federal government imposed a travel ban on Australians to prevent the contagion of coronavirus.

"At present, due to government limitations, we are temporarily unable to operate in a normal manner. This has led to the stoppage of the vast proportion of work previously carried out by our employees," Flight Centre said.

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Virgin Slashes Flights By 90 Percent, Thousands Of Workers Stood Down

Thousands of workers will be stood down for two months, as Virgin Australia cuts its domestic capacity by 90 percent.

"We have made the difficult decision to stand down a considerable portion of our workforce for an indefinite period of time."

"The business will also gradually over the coming months move to close just under 30 percent of our stores nationwide across several of the Flight Centre Travel Group brands."

The travel industry has been hit hard by the government's COVID-19 restrictions.

Virgin Australia, Qantas and Jetstar have all halted international flights, while TigerAir has been suspended indefinitely.

Virgin announced on Wednesday it would cut its domestic capacity by 90 percent, standing down 8,000 of its 10,000 workers temporarily.

Two-thirds of Qantas employees have also been temporarily stood down. The move will impact 20,000 of the airline's employees.

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