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CVC, One of the Largest Travel Agencies in Brazil, Announced the Layoff of 100 Employees, or 4% of the Current 2,500 Employees at the Company. The Layoffs Affected the Information Technology (IT) and Support Areas, Reducing the Number of Outsourced Workers.
The measure is part of an internal restructuring process, the operator reported. In a released report, CVC stated that the layoffs were motivated by “business integration and company acquisitions.” The company also said that the job cuts are part of a “targeted structural adjustment.”
A wave of layoffs in the economy and employment sector is expected to further impact CVC. Although the layoffs are minimal, sources pointed out that the wave may be larger, as the group plans to close nearly half of its stores. Additionally, the layoffs are expected to affect an average of 50% of the CVC units that will continue to operate.
The Negative Scenario of the Segment Was Highlighted by CVC’s Annual Market Study This Year, Released Internally Last Monday.
Following that, the cuts began two days later. However, the company denied this disclosure and stated that it recorded an increase in orders for economical travel packages. For those laid off, the company provided all necessary support and created the Next Embark program, which will guide professionals’ careers to help them return to the job market as quickly as possible.
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Risk of Company Bankruptcy
The layoffs follow a December study by the consultancy Economática, which identified CVC as one of five companies whose stocks are traded on stock exchanges and are at higher risk of bankruptcy. As a result, there is a risk that these companies may fail.
According to the research, there is a 37% chance that the companies will be unable to meet their operating costs. The evaluation criteria include capital value, assets, reserves, earnings before interest and taxes (EBIT), equity, and liabilities. Market sources estimate CVC’s total debt at R$ 1 billion.
On social media, the laid-off CVC employees commented on the decision and refrained from criticism. “An important part of my life unfolded within the walls of the Sete de Abril building (former headquarters), then in the majestic buildings of Barra Funda, and finally in Santo André, an area that CVC nearly dominated in recent years,” recalls a former employee.
Get to Know CVC
CVC Corp is the largest travel group in the Americas, made up of business units that operate under distinct brands in vacation and leisure travel, corporate travel, and cultural exchange and course-related travel abroad.
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