Carnival Corp. Announces Layoffs, Says Agent Commissions Still Protected
Carnival Corp. has announced that to further strengthen its liquidity, the cruise line will perform "a combination of layoffs, furloughs, reduced work weeks and salary reductions across the company, including senior management."
These measures, it says, will contribute "hundreds of millions of dollars" in cash conservation.
"Since the company paused its guest cruise operations in early MAR, workforce changes were largely placed on hold, even in the face of no meaningful revenue, to forestall the financial impact on its employees while still meeting its fiscal responsibilities – deferring employee actions beyond that of many others in similar situations during this pandemic," Carnival Corporation & plc President & CEO Arnold Donald.
"Taking these extremely difficult employee actions involving our highly dedicated workforce is a very tough thing to do. Unfortunately, it's necessary, given the current low level of guest operations and to further endure this pause."
The company said it will continue to support its travel agent partners by paying commissions on cancelled cruises and on future cruise credits when guests rebook.