Carnival Corp.'s UK division, Carnival UK, has begun a process that will result in layoffs and pay cuts, the Southern Daily Echo's Darren Slade first reported.
Carnival UK will hold meetings with employees who may be let go over the next month, according to internal documents viewed by Business Insider. Employees will learn if they're being laid off in late June, according to the documents. The layoffs may affect about 500 people.
Those who are laid off will receive a severance package based on their age and the number of years they spent working for Carnival.
The packages fall under three tiers, according to the documents. Employees who are under 22 will receive half a week's pay for every full year they spent at the company. Workers between the ages of 22 and 41 will receive one week's pay for every full year of employment, and employees 41 and older will receive a week and a half's pay for each full year they worked at Carnival.
The weekly pay used to calculate an employee's severance package will be capped at £538 ($661), and laid-off workers can receive severance pay for up to 20 years of employment.
Employees who remain at the company will have their pay and hours cut by 20% from July 1 through November 30, according to the documents. Carnival's UK division may adopt a four-day workweek, with employees working from Monday through Thursday.
"We have begun a period of consultation with our staff in Southampton across all levels of the business," a Carnival UK representative told Business Insider. "Our priority is to treat everyone with fairness and respect and to have open and honest conversations. These changes, whilst very difficult, are to ensure the future sustainability of our business."
The global spread of COVID-19 has shut down the cruise industry since March, after the disease infected passengers and crew members on a number of ships, including the Carnival-owned Diamond Princess, Ruby Princess, and Costa Luminosa.
Carnival has raised over $6 billion in debt and equity in recent months, and the company's CEO, Arnold Donald, said in April that it had enough money to survive a scenario in which it earns no revenue for the rest of this year. Carnival has also cut the pay of executives and ship workers and plans to return some ships to service in August.
Do you work for Carnival or another cruise company? Do you have an opinion on how your company or the industry as a whole has handled the coronavirus? Email this reporter at mmatousek@jkmperu.com. You can also reach out on Signal at 646-768-4712 or email this reporter's encrypted address at mmatousek@protonmail.com.
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- Thousands of stranded cruise workers are finally being allowed to disembark ships in the US after cruise companies agree to strict deals with CDC
- Carnival says it will begin cruises again in August after massive coronavirus outbreaks forced it to cease operations
