Carnival to downsize operations following coronavirus shock

Carnival Corporation has announced a series of layoffs, furloughs, reduced work weeks and salary reductions as the company seeks to boost liquidity during the coronavirus pandemic.

The cruise giant did not provide specific number for total job losses, but said the moves would contribute “hundreds of millions of dollars” in cash conservation on an annualised basis.

However, to provide some context, in Florida there are 820 positions being eliminated out of a workforce of roughly 3,000 employees, with another 537 employees being placed on furlough.

Carnival Corporation is largest cruise operator in the world as parent to Carnival Cruise Line, P&O Cruises, Cunard, Princess Cruises, Holland America Line, Seabourn, Aida Cruises and Costa Cruises.

Carnival itself ceased sailings on March 13th, with the remaining brands following suit days later.

“Taking these extremely difficult employee actions involving our highly dedicated workforce is a very tough thing to do.

“Unfortunately, it is necessary, given the current low level of guest operations and to further endure this pause,” said Carnival Corporation chief executive, Arnold Donald.

“We care deeply about all our employees and understanding the impact this is having on so many strengthens our resolve to do everything we can to return to operations when the time is right.

“We look forward to the day when many of those impacted are returning to work with us and we look forward to the day, when appropriate, that once again our ships and crew are delighting millions of people at sea and we can be there for the many nations and millions of people who depend on the cruise industry for their livelihood.”

Last month the company completed a financing effort with an offering of senior secured notes, senior convertible notes and common stock, netting $6.4 billion of additional liquidity.