9th Apr 2020 09:09
(Alliance News) - Trainline PLC on Thursday said it will furlough staff and its board members have taken a paycut as the company cuts costs amid a "significant fall" in rail travel over the past month.
The operator of the eponymous online transport ticket sales platform said passenger numbers fell as a result of UK government-imposed lockdown measures due to Covid-19.
"Given a significant fall in industry passenger numbers over the past month as a result of the Covid-19 lockdown, we have taken quick and decisive measures to reduce operating costs and cash outflows," Trainline explained.
As well as pausing all marketing spend and introducing a hiring freeze, Trainline said its chief executive has taken a 50% salary cut "for the foreseeable future".
The board and management team have voluntarily taken a 20% reduction in fees and pay.
Trainline added that "certain teams" will be furloughed as part of the UK government's Coronavirus job retention scheme.
These actions have meant Trainline's monthly operation costs have reduced to about GBP8 million and GBP9 million per month.
Shares in the company were 6.4% higher at 351.20 pence each in London on Thursday morning.
By Eric Cunha; [email protected]
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