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March 26, 20 - 2:56 pm - LABS

Brazilian travel operator CVC announces cost cuts due to COVID-19

The largest Brazilian travel operator CVC announced measures to reduce its cash burn at a time of zero revenue for the company with travel grinding to a halt worldwide due to the coronavirus pandemic, according to Brazil Journal.

CVC said it will reduce the workload by 50%; reduce the board and board salary by 50%; suspend new hires and promotions, freeze vacancies and hourly banks, postpone all non-priority projects and investments and renegotiate terms and payment terms with suppliers and return all charters.

Photo: Facebook/CVC

Following these contingency measures, the company estimates that its recurring expenses will be around BRL 50 million ($10 million) per month, which could mean a cut between 40% and 50% in the company’s recurring costs, according to a specialist heard by Brazil Journal.