Jul 22, 2008 7:54 am US/Eastern
Royal Caribbean Cuts 400 Jobs, Most In S. Florida
300 Employees Were Given Pink Slips, 100 Positions Eliminated
Fuel Oil Costs Blamed For Cuts
MIAMI (CBS4) ―
Miami's second largest cruise line started handing out pink slips to hundreds of employees Monday in an effort to cut operating expenses by $125 million. The company says 400 positions will be cut, most of them at its Miami headquarters.
The firings had been rumored for weeks as the company struggled with increasing fuel prices and a declining economy that has kept people closer to home and skittish about traveling. The announcements came on the even of the company's disclosure of second-quarter earnings Tuesday.
Royal Caribbean has about 3,361 employees in South Florida and about 861 in call centers located in Oregon and Kansas. That would mean the company cut positions by about 9.5 percent, though CEO Richard Fain said 100 of those positions were vacant.
Most of the 300 jobs cut were in South Florida. Reports from the Wichita, Kansas call center said about 18 people lost jobs Monday, with a smaller number in Eugene, Oregon.
Like most cruise lines, Royal Caribbean has started charging customers fuel surcharges, but the price of the fuel oil which powers cruise ships has risen faster than the fees, despite repeated increases. Royal Caribbean passengers now pay $10 per person per day, adding $140 to the price of a 7-day cruise for two.
Despite the fees, the cruise line said people are still cruising, and Royal Caribbean even reported a small increase in travelers.
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