Owners to shed 260 jobs: Management targeted in three-point plan to salvage market share

OWNERS ABROAD, the third- largest travel company in the UK, is axing 260 jobs in an effort to prevent the gap between itself, Thomson and Airtours from widening.

Industry analysts expect Thomson to increase its share of next summer's holiday market from 31 to 35 per cent, and Airtours from 15 to 22 per cent, with Owners slipping from 16 to 9 per cent.

Nearly all the jobs being lost are in management, most - about 10 per cent of the workforce - at Owners' headquarters in Crawley, Sussex.

The redundancies, saving pounds 7m a year in wages and removing four layers of management, form the first part of a three-stage plan to revive the company.

Francis Baron, who became chief executive only seven weeks ago, said: 'The problem is that it has been top-heavy in management. The previous board was good at entrepreneurial things, but no good at nitty-gritty management.'

He said the cuts were his decision and not prompted by Thomas Cook, the travel agency that helped defeat a pounds 300m bid for Owners by Airtours earlier this year. Thomas Cook has a 20 per cent stake.

Mr Baron said the management shake-out would leave 'no more than two levels between me and the brand and product managers. This company has got to become responsive to the marketplace.'

Owners was caught out in August when Thomson launched its Summer '94 brochures early.

Analysts are unsure about the extent of the damage Thomson inflicted on Owners' profits. Forecasts for the 1992/93 year, which ended in October, range from zero to pounds 15m.

Owners declined to comment on profits, but admitted it made mistakes in its prices in the September launch of first edition brochures for next summer.

'Our team misread the market. There has been a slip in our market share, but not necessarily in our volume sales,' Mr Baron said.

Owners will soon release a second edition and industry observers expect keener prices.

Stage two of the plan involves improving selling systems. The third will 'see us sort out the brand structure by March so we are ready to do battle in 1994/95'.