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Woes for Royal Caribbean – 25% staff reductions reported

Posted by Anita Dunham-Potter On July - 17 - 2008

OyAccording to travel industry publication Travel Weekly, Royal Caribbean is set to lay off 25 percent of its shoreside staff. The downsizing comes amid rising record fuel prices, weak dollar, and expensive new cruise ship builds. Sources cite that the company is expected to downsize its staff and make budget cuts.

In the article Travel Weekly quoted a Credit Suisse Bank analyst who stated that the reductions and budget cuts could save the line $200 million.

Royal Caribbean did not confirm nor deny the layoff rumors. “We continuously look for ways to operate more efficiently without compromising the experience of our guests and travel agent partners,” said Lynn Martenstein, Royal Caribbean’s vice president of corporate communications. “Today’s operating environment, with astronomical increases in fuel costs, puts even more pressure on us to find ways to control our costs. Like most companies today, we are redoubling our efforts to find savings, but we have not announced any specific actions.”

Royal Caribbean will report its second quarter earnings on July 22. Cruise industry sources in the Travel Weekly article say the line’s cuts are expected to be announced prior to that date.

(Editor’s note: We incorrectly identified the source of this article to be Seatrade Insider — we have since corrected the source of the story to Travel Weekly. We apologize for the mix up.)

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13 Responses to “Woes for Royal Caribbean – 25% staff reductions reported”

  1. Lee Doyle says:

    so is this true? I am confused with the last part about the source of the news.

  2. Hello Lee,
    Travel Weekly reported the percentage amount. I guess we will know the real news when Royal Caribbean decides to release it. It’s unfortunate that people will be losing their jobs — I certainly hope it’s not 25% or any at all for that matter.

    Best,
    Anita

  3. Josh says:

    Thats wack. My wife works there. There goes my cruise discounts.

  4. Jess says:

    It’s true alright, my brother and at least 12 others in his dept. are getting laid off tomorrow.

  5. Summer says:

    My fiancee works in the Wichita, KS office and this morning he went in and the layoffs have started. A woman he works with who has been with the compnay since 99 and his supervisor were among the first this morning. We are very concerned that he will be one of the ones laid off.

  6. Greta says:

    This is terrible news for the cruise industry.

  7. Summer says:

    Well, it’s official. They laid off a bunch of people yesterday, my fiancee being one of them. It seems that they started from the people with most seniority and worked their way down. The admin girls were cut almost completely. One of the trainers, 3 supervisors and 4 people form my fiancee’s team. There were cuts in Miami and in Oregon as well.

  8. Summer says:

    And it keeps getting better. They made my fiancee sign a piece of paper stating that he would forfeit his severance if he talked to a news media or if he filed a lawsuit. They are basically holding their severances hostage. Royal Caribbean has tried to put up the front that they are family oriented and care for their employees and like to promote company loyalty. This was so opposite of their public persona.

  9. BRIAN says:

    JUST CAN HOME AFTER A FIVE NIGHT MEXICO/BELIZE CRUISE FROM NAVIGATOR OF THE SEAS. WAS VERY..VERY…VERY DISAPPOINTED WITH THE QUALITY OF FOOD AND ACTIVITYS ON THIS SHIP. WE HAVE BEEN ON PAST CRUISES WITH ROYAL CARRIBIAN SO HAVE SOMETHING TO COMPARE IT TO.. THEY HAVE CUT BACK SO MUCH ON THERE CRUISES I WOULD RECOMMEND FINDING A NICE TROPICAL LOCATION AND FLY THERE ANDS RELAX AND ENJOY. GETTING OFF THE SHIP WAS NUTS!!!! VERY RUDE WORJKERS ON THE DEPARTURE.

  10. marcus gordon says:

    I’m from Trinidad and Tobago and Although I’ve worked woth royal caribbean forsince june 2000, they laid me off. It was for not getting a visa to join the ship in europe. When my wife was pregnant I didn’t go home but work for the company. My daughter is two and a half years old and I’ve only seen her for 3 months of her life. Rccl don’t care and they speak of values and they don’t care of the lives of their crew members. They don’t even pay retirement benefit and most crew have to go through the court to get their money. The company is secretive and makes the employees do their dirty work with no regard. The murder on the brilliance of the seas is proof as to how the company covers up things. Working for rccl has made me not want to work for cruise lines again because i’ve seen too much racialism and victimization to crew and to the paying guests. Probably that’s why Jack Williams left the company because he saw the madness and illegal activities that go on in the operations of royal caribbean. The government authorities should not just look at the money rccl brings to the economy but the slavery that they have running strong when slavery day have been abolished. mgpeekus@hotmail.com

  11. Jeremy says:

    Should have come to your blog first, I’ve wasted 30 mins searching around – Sigh* thanks anyway…

Trackbacks/Pingbacks

  1. […] foot call center employs approximately 600 people and has been in opertion since 1997. According to blog posts on http://www.expertcruiser.com the layoffs have […]

  2. […] ex-employees are speaking out. A family member of a fired employee wrote the following on ExpertCruiser’s blog: “They made my fiancée sign a piece of paper stating that he would forfeit his severance if […]


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