Economy and Employment: CVC Announces Layoff of 4% of Its Workforce in Focus on Company Restructuring

Written by Bruno Teles

Published on 17/01/2023 at 18:32

Economia e Emprego: CVC anuncia a demissão de 4% do seu quadro de funcionários de olho na reestruturação da empresa (Foto/divulgação)

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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.

Economy and Employment: CVC Announces Layoff of 4% of Its Workforce in Focus on Company Restructuring

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 Negative Scenario of the Segment Was Highlighted by CVC’s Annual Market Study This Year, Released Internally Last Monday.

Risk of Company Bankruptcy

Get to Know CVC

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Economy and Employment: CVC Announces Layoff of 4% of Its Workforce in Focus on Company Restructuring

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 Negative Scenario of the Segment Was Highlighted by CVC’s Annual Market Study This Year, Released Internally Last Monday.

Risk of Company Bankruptcy

Get to Know CVC

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

Forget petroleum-based asphalt: a Scottish company transforms 684,000 plastic bottles into one kilometer of road that is 60% more resistant and up to 10 times more durable, and the technology has already started replacing traditional asphalt in more than 30 countries.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

Austrian engineers have developed an inflatable concrete technology that transforms flat slabs into domes using only air pressure, eliminating scaffolding and temporary forms, and potentially changing the way bridges, tunnels, and curved roofs are constructed worldwide.

A robot named Walter does the work of five bricklayers per hour and can save the construction industry, where the average age of professionals is 46 years and almost no one wants to learn the trade anymore, in the United Kingdom.

Spain installs two giant pipelines 2.2 km off the coast to draw water from the Mediterranean and supply a megafacility capable of producing 200 million liters of drinking water per day.

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