Travelocity cuts costs

The internet travel site Travelocity.com has become the latest firm to be forced into cutbacks following last month's terrorist attacks.

The company said it was shedding 10% of its non-customer service workforce.

It also said it would cut advertising and reduce spending in other areas.

Travelocity blamed the recent downturn in air travel for the measures.

Job cuts spread

Over a hundred thousand jobs have been shed by airlines since the terrorist attacks of 11 September, and it now seems that travel agents are beginning to suffer.

Earlier this week, Ebookers.com, which claims to be Europe's top ranking online travel agency, said it was cutting 10-20% of its staff, and was reviewing costs.

Travelocity said the downturn in business meant they had to take action.

"Reductions in staff are difficult in any situation and particularly difficult in this one because our entire team has rallied to support our customers during the recent tragic event," said Terrell B. Jones, president and chief executive of Travelocity.com.

"As of last week, airline ticket volumes were at 70% of expected levels and have been rising, but it is too early to gauge where overall bookings will stabilize. Therefore we have taken prudent cost reduction measures."

About 320 jobs will be cut, the majority of them through the closure of a call centre in Sacramento.

In addition the company has put a freeze on the hiring of new staff, and is also cutting back on advertising.