Car hire firm Avis to axe jobs

Car hire firm Avis Europe today said it planned to cut 315 jobs - equivalent to 5 per cent of its workforce - and close some rental locations.

The company will also save costs by transferring staff from its UK business head office in Hayes, Middlesex to its headquarters at Bracknell.

Avis, which operates the Avis and Budget brands in Europe, the Middle East and Asia, said volumes were "noticeably" weaker in the final quarter of the year and warned it was now unlikely to better last year's underlying profits.

Chief executive Pascal Bazin said: "We have taken decisive action to raise pricing, reduce costs and maintain flexibility."

The company said the changes, including the closure of some "low-margin" rental locations, will save €16m (£13.7 million) a year.

It did not provide details of where the jobs will be lost, although a spokesman said staff affected by the closure of the Hayes office will be offered roles within the business.

The company also plans a "rigorous" recruitment freeze, as well as the faster release of seasonal staff and significant cuts in discretionary spending.

Mr Bazin said: "Together with the ongoing improvement in our product and customer service levels, these actions will help position the business for the likely continued difficult conditions in 2009 and also for the longer term."

Avis is also feeling the impact of the weaker used car market, particularly in Spain. As a result, it now expects fleet costs to be greater than anticipated over the second half of the year.

Avis said the 315 job losses were likely to be split between the UK, Spain, Germany and Italy. Between 50 and 100 positions could be lost in the UK, including some posts at its European headquarters at Bracknell.