CVC Corp, one of the main tourism companies in Brazil, carried out an internal restructuring this Wednesday (11), which involved about 100 layoffs, equivalent to 5% of its staff. The company says it intends to broaden its focus on retail and provide more support to franchisees.
“Adjustments were made in areas such as IT, with the reduction of third parties in the area, and in support areas, due to the integration of business with the acquisition of companies”, said CVC through its press office.
“There were about one hundred dismissals, which is equivalent to less than 5% of the staff. The group currently has around 2,500 employees.”
“CVC Corp reaffirms its confidence in the Brazilian tourism market and in the investment policy for the recovery of the sector. The company is giving all the necessary support to former employees”, continues the statement. Those dismissed will receive guidance to help with their replacement, according to the company.
The company said that the current changes seek to expand attention to shopkeepers.
In September 2022, the last data available, the company had 1,129 stores in Brazil, 1,060 of which were franchised. There were another 102 units of the brand in Argentina.
The company also carried out at least 11 changes in management positions, which are divided by popular destinations, such as the Caribbean and Bahia, and by types of travel, such as air products or all inclusive.
This Wednesday, some CVC franchisees posted farewell messages on social networks. Maria Asencio, for example, said that she had been working with the brand for 24 years, and that she ended the activity of six stores in Sergipe. “Unfortunately, the last three years have been hard and very difficult. Today we end our work under the CVC banner here”, she wrote on Linkedin.
Employees dismissed, heard by Sheet on condition of anonymity, they said that the company’s restructuring process had been going on for some weeks, and that some projects were being postponed or canceled to save expenses at the end of the year.
Despite this, some people claim that they were surprised by the cut because, according to them, CVC’s management would have said in a recent video transmission to employees that the company was recovering from the crises generated by the pandemic.
The company showed signs of improvement: travel budget requests for Carnival 2023 are on the rise and already represent 95% of those registered in the same period of 2019, before the pandemic.
In the third quarter of 2022, CVC had a net loss of BRL 75 million, 20% less than in the previous quarter, when the loss was BRL 94 million, according to data from its last earnings report.
From January to September 2022, the company accumulated a loss of BRL 336 million. Debt amounts to BRL 924.5 million, an amount that remained relatively stable throughout 2022.
“Our results continue to register the effects of the sector’s recovery, with growth of two
digits in Brazil and Argentina in Consumed Reserves”, said the company in the report, which highlighted a 35% increase in reserves, compared to the same period in 2021.
Last year, the company moved forward with its plan to become what it called turistech, a technology company focused on tourism. New systems adopted by the company sought to obtain and analyze more data about customers. Since 2020, more than BRL 300 million has been invested in technology. CVC also launched a loyalty program and more possibilities to pay for travel packages in installments.
The company was created in Santo André (SP) in 1972, as a travel agency. In the following decades, it expanded to Brazil by offering packages at more affordable prices and in installments. In recent years, CVC has bought some other companies in the sector, such as Submarino Viagens and Grupo Trend.
In recent weeks, other companies have had layoffs and restructurings. On Tuesday (10), for example, 99 fired at least 77 people, according to a list that circulates on social media and is being released by former employees.
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