Hays Travel is to cut up to 878 jobs from a workforce of 4,500, the firm has announced.
At the time, Hays said it had taken on almost 600 Thomas Cook employees and job offers were pending for many more.
When it began in March, the government covered 80% of staff monthly salaries up to £2,500 – but that support is due to taper off, despite some businesses still not being allowed to reopen and others being constrained by social distancing rules.
This month, employers must start paying national insurance and pension contributions for their staff. In September, companies will have to pay 10% of furloughed employees’ salaries, rising to 20% in October before the scheme finishes.
The chancellor has also offered to give employers a £1,000 bonus for each worker brought back from furlough and employed through to January next year, but critics have warned such incentives “look too small to be effective given the uncertainty about the economic outlook”.
John and Irene Hays, pictured last year, own Sunderland-based Hays Travel
Piling on the misery for travellers and travel firms, the government scrapped Spain’s preferential status in terms of holidays late last month, meaning those returning to Britain from the popular tourist destination now have to isolate for 14 days.
John and Irene Hays said they were “devastated” about the job losses and would do “all we can in consultations” to help those affected.
They also vowed to “focus on retaining as many people as possible and (rebuild) consumer confidence through our renowned friendly and knowledgeable customer service”.