Carnival Corp Layoffs

[Crazy For Cats]

Carnival issued a press release announcing layoffs, furloughs, shortened work weeks and pay cuts.  This is a link to the announcement:

 

https://www.cruiseindustrynews.com/cruise-news/22943-carnival-corporation-confirms-company-wide-layoffs.html

[crusinbanjo]

And so it begins!  Restructuring, mergers, etc, etc, etc.  Expect the Cruise industry to be consolidated, Ships to be decommissioned, Jobs eliminated, Employees laid off, Services cut.  Sadly, Cruising may never be the same.

[Luv2Crus40]

Cruising will come back.  It has survived world wars and other pandemics.  It may take a couple years and some more cost cutting (Ugh!) but they will survive!

[DFD1]

Bound to happen....and this is likely just the beginning.

[ski ww]

With all those ships in lay up, they have to let people go for the time been. Once things start up again hopefully they'll all be called back. It's the same as what's happening to businesses on land. 

[VermeulT]

I know of several industries that started this weeks ago.  Especially given that they are essentially closed for 6 months - it would be a shock to not think this would happen.

 

They will come back.  I believe it wholeheartedly.  So much so that I took advantage of another dip in stock prices yesterday and bought more.

Yes - cruising will NOT be the same.  There is no going back for most of life as we knew it.

[iancal]

Have to wonder if Carnival will do a GM and axe some of the brands a la Pontiac and Oldsmobile.

[NordicPrince]

2 hours ago, Luv2Crus40 said:

Cruising will come back.  It has survived world wars and other pandemics.  It may take a couple years and some more cost cutting (Ugh!) but they will survive!

 

I'm not sure your summary of "survival through world wars and Pandemics" has any connection to cruising. Maybe you're confusing it with ocean travel which was necessary before the age of air travel and jet travel in particular. 

The age of modern cruising began in the late 60's and early 70's. I don't recall any World Wars or pandemics on this scale in this period.

Cruising will recover when a treatment for Covid-19 has been discovered and a well distributed vaccine developed. 

In the meanwhile don't give the cruise lines any money.

 

[NordicPrince]

30 minutes ago, VermeulT said:

I know of several industries that started this weeks ago.  Especially given that they are essentially closed for 6 months - it would be a shock to not think this would happen.

 

They will come back.  I believe it wholeheartedly.  So much so that I took advantage of another dip in stock prices yesterday and bought more.

Yes - cruising will NOT be the same.  There is no going back for most of life as we knew it.

Buying on sentiment is not investing, it's called speculation.

Right now you have companies that have no income and now major additional debt to repay. This is not an encouraging outlook for the common stockholder. 

Odds of re-organization are strong.

Hope you are gambling with money that is non-essential.

[Sir PMP]

3 hours ago, Crazy For Cats said:

Carnival issued a press release announcing layoffs, furloughs, shortened work weeks and pay cuts.  This is a link to the announcement:

 

https://www.cruiseindustrynews.com/cruise-news/22943-carnival-corporation-confirms-company-wide-layoffs.html

Hopefully it includes Mr. Donald himself...

[HaveWeMetYet]

The cruise industry will come back in some form but the common stockholders will very likely be "Put Out to Sea".

[YXU AC*SE]

Release text.  Scott. 

 

Source: https://www.carnivalcorp.com/news-releases/news-release-details/carnival-corporation-announces-additional-steps-further

 

 

Carnival Corporation Announces Additional Steps to Further Strengthen Ability to Manage through Extended Pause in Guest Operations

 

MIAMI, May 14, 2020 /PRNewswire/ -- Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the world's largest leisure travel company and cruise operator, announced today a number of additional actions it is taking to further strengthen its liquidity position in the event of an extended pause in guest operations due to COVID-19.

 

Carnival Corporation was the first to pause the guest cruise operations of some of its brands in the face of the impact of the COVID-19 global pandemic, followed on March 13th by the rest of its brands and the other cruise companies. That action was taken before stay-at-home or shelter-in-place was implemented in the U.S. and before U.S. hotels, airlines, restaurants and other forms of public gathering or transportation began shutting down or limiting service.

 

Last month the company completed a successful financing effort with a heavily oversubscribed offering of senior secured notes, senior convertible notes and common stock, netting $6.4 billion of additional liquidity. To further strengthen liquidity, Carnival Corporation and its brands are announcing a combination of layoffs, furloughs, reduced work weeks and salary reductions across the company, including senior management. These moves will contribute hundreds of millions of dollars in cash conservation on an annualized basis.

 

Since the company paused its guest cruise operations in early March, workforce changes were largely placed on hold, even in the face of no meaningful revenue, to forestall the financial impact on its employees while still meeting its fiscal responsibilities – deferring employee actions beyond that of many others in similar situations during this pandemic. The company continues to support its travel agent partners by paying commissions on canceled cruises and on future cruise credits when guests rebook. 

 

In addition to its continuing efforts to repatriate the many thousands of crew members still on its ships to their home countries, the company is also working closely with governments, regulatory agencies, health and infectious disease care experts around the globe to develop the best practice public health protocols to address the threat of COVID-19 for when guest operations resume. Repatriation efforts include chartered flights as well as rerouting its ships to crew home ports where those ships would not have otherwise sailed. The company is also working closely with its many destination partners as it continues to evaluate the best options and safety protocols for return to service.

 

"Taking these extremely difficult employee actions involving our highly dedicated workforce is a very tough thing to do. Unfortunately, it's necessary, given the current low level of guest operations and to further endure this pause," said Carnival Corporation & plc President & CEO Arnold Donald. "We care deeply about all our employees and understanding the impact this is having on so many strengthens our resolve to do everything we can to return to operations when the time is right. We look forward to the day when many of those impacted are returning to work with us and we look forward to the day, when appropriate, that once again our ships and crew are delighting millions of people at sea and we can be there for the many nations and millions of people who depend on the cruise industry for their livelihood.

 

Added Donald, "We also want to thank our guests for their many thoughtful notes and overall outpouring of support. It is clear there is tremendous anticipation for a return to cruising. It's also encouraging to note that the majority of guests affected by our schedule changes want to sail with us at a later date, with fewer than 38 percent requesting refunds to date. Our booking trends for the first half of 2021, which remain within historical ranges, demonstrate the resilience of our brands and the strength of our loyal recurring customer base, of which 66% are repeat cruisers.  In addition, we plan to stagger fleet reentry to optimize demand and operating performance over time."

The cruise industry is a significant contributor to the U.S. and global tourism sectors, according to the Cruise Lines International Association (CLIA), with economic impact in the U.S. exceeding well over $50 billion in total contributions. On a global scale, the economic output due to the cruise industry continues to produce new jobs and income, generating a total global output of over $150 billion and supporting over 1.2 million total jobs.

 

About Carnival Corporation & plc
Carnival Corporation & plc is the world's largest leisure travel company with a portfolio of nine of the world's leading cruise lines. With operations in North America, Australia, Europe and Asia, its portfolio features Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises (Australia), Costa Cruises, AIDA Cruises, P&O Cruises (UK) and Cunard.

 

Additional information can be found on www.carnival.com, www.princess.com, www.hollandamerica.com, www.seabourn.com, www.pocruises.com.au, www.costacruise.com, www.aida.de, www.pocruises.com and www.cunard.com.

 View original content:http://www.prnewswire.com/news-releases/carnival-corporation-announces-additional-steps-to-further-strengthen-ability-to-manage-through-extended-pause-in-guest-operations-301059332.html

 

SOURCE Carnival Corporation & plc

Roger Frizzell, Carnival Corporation, rfrizzell@carnival.com, (305) 406-7862; Mike Flanagan, LDWW, mike@ldwwgroup.com, (727) 452-4538

[npcl]

5 hours ago, Luv2Crus40 said:

Cruising will come back.  It has survived world wars and other pandemics.  It may take a couple years and some more cost cutting (Ugh!) but they will survive!

Recreational cruising like we have today did not exist prior to world war I and World war II.  At that time it was ocean liners used for transportation.  So cruising as we have today had not survived both world wars.

 

As far as pandemics nothing even close to what  we have now, since WW I when recreational cruising also did not exist.

[Luv2Crus40]

That's right - good point.  Being relatively new to cruising, I never realized that ocean liner cruises were not recreational and mostly means of transportation.  For some reason, I thought that at least Cunard's ships were used for recreational crossings, too.  Well, I'm still being optimistic about future cruising.

[Krazy Kruizers]

Thanks for the information.

 

Cruising will not be the same as we all have known it for a long time to come.

[boards]

How much longer will this website last?

[rkacruiser]

Re:  Recreational cruising between WW I and WWII.  During Prohibition, weren't there some short cruises made for the purpose of avoiding Prohibition?

[rkacruiser]

5 hours ago, Sir PMP said:

Hopefully it includes Mr. Donald himself...

 

I also would like to see an announcement that all of the Senior Executives of CCL corporate as well as all of those who remain with there respective Divisions are reducing a reduction of salary.  Having members of the Board of Directors doing the same would also be appreciated by this CCL shareholder.  

[rkacruiser]

6 hours ago, iancal said:

Have to wonder if Carnival will do a GM and axe some of the brands a la Pontiac and Oldsmobile.

 

Other large companies have done the same:  No longer a DeSoto or a Mercury.  Airlines have done this for years.  Where have you gone TWA, Piedmont, US Air, etc?