10th Nov 2015 13:02
LONDON (Alliance News) - Alton Towers may axe up to 190 jobs across the resort as it attempts to restructure the business following the rollercoaster crash last June.
The theme park resort, which is owned by Merlin Entertainments PLC, said it is planning a restructuring of the business in time for the new season in March 2016 "at the end of a very difficult year".
It said the proposals have been prepared as part of a long-term plan examining the immediate challenges the business faces as well as its future needs following a detailed review of operations across the resort.
Alton Towers said it needs a "modern, flexible structure" for a "reactive and customer-focused approach" in a "very dynamic and competitive leisure industry", after the business was hit by reduced visitation following the rollercoaster crash.
This may, however, result in the loss of up to 190 jobs across the resort. Alton Towers said it anticipates some of the job losses will be accounted for by a programme of non-replacement of existing vacancies, early retirement, redeployment elsewhere in the group, and voluntary redundancies.
On June 2, riders on the Smiler rollercoaster at Alton Towers were trapped 25 feet up at a 45 degree angle for up to four-and-a-half hours after two carriages collided, resulting in 16 people being injured, including four seriously, two of which had to have a leg amputated due to the severity of their injuries.
Merlin responded to the accident by temporarily closing the entire theme park, in the English Midlands, for four days, as well as the Saw rollercoaster at Thorpe Park, near London, which is a similar ride to Alton Towers' Smiler. Alton Towers has since reopened but the Smiler and Saw rides both remain closed.
As a result, the theme parks saw a significant reduction in customers throughout the summer peak season, leading to a 13.2% drop in Resort Theme Parks revenue in the 36 weeks ended September 5.
"This was an incredibly difficult decision to make and it has not been taken lightly or easily. However, we believe that this reorganisation now, together with a continuous programme of capital investment, will not only ensure the resort's long term growth, which is so vital to the local economy, but also protect the jobs of the bulk of its employees for the future," Alton Towers said in a statement released on Monday.
Shares in Merlin Entertainments were trading down 1.3% at 402.16 pence Tuesday afternoon.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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