UK firms slash jobs to cope with outbreak's long term impact

LONDON (AP) — Companies linked to hospitality and travel in Britain have announced thousands of more job cuts as the longer term consequences of the COVID-19 pandemic take hold, choosing to slim down for survival rather than await potential government handouts.

The owner of sandwich and coffee shop chain Upper Crust was the latest business that caters to travelers to announce cuts Wednesday. Some 5,000 jobs are under threat as travelers stay home amid the COVID-19 pandemic.

It comes only a day after Airbus cut 15,000 jobs, including 1,700 in the U.K. Budget airline easyJet began consultations with unions on cutting a third of its staff, or 4,500 jobs in all.

Prime Minister Boris Johnson sidestepped pressure for more direct support to hard-hit industries during question time in the House of Commons on Wednesday. He's putting his money on a public works extravaganza that he's likened to Franklin D. Roosevelt's New Deal.

“We’re going to build, build, build and deliver jobs, jobs, jobs for the people of this country,'' he said.

That's not helping hard hit sectors such as aviation though. The sector has been pressing for a bespoke solution. In the meantime, there have been cuts and promises of more.

EasyJet CEO Johan Lundgren said job losses and the potential closure of three bases in the U.K. could not be avoided given the near- halt of air travel globally. Change was necessary for survival.

“These are very difficult proposals to put forward in what is an unprecedented and difficult time for the airline and the industry as a whole,’’ he said. “We are focused on doing what is right for the company and its long term health and success so we can protect jobs going forward.’’

The collapse of travel is also having further ripples into the economy. BP and...