Trainline bosses to take pay cut as bookings plummet
The chief executive of ticket sales app Trainline is taking a 50% pay cut, with the board and management team taking a 20% cut in fees and pay during the coronavirus crisis.
Bosses said the decision comes as they plan to furlough certain teams under the Government’s job retention scheme, defer bonuses and pay reviews, along with “revising payment terms with some of our suppliers”.
With ministers telling families to stay indoors and not make unnecessary trips, train travel has fallen dramatically.
The company said: “As the impact of Covid-19 remains uncertain, Trainline will continue to monitor developments closely and adapt our response accordingly.
“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.
“The group’s mitigating actions include effectively pausing marketing and other discretionary spend, introducing a recruitment freeze, deferring bonus payments and pay reviews for staff for… 2020, and revising payment terms with some of our suppliers.”
It added that by May all refunds for pre-existing bookings on trains and coaches are expected to be processed for next month.
Clare Gilmartin, chief executive of Trainline, said: “Over the past few weeks, we have worked extremely hard on our customers’ behalf to help them through what has been unprecedented levels of travel disruption.”
She added: “Trainline is a resilient business and we believe that our prudent action now strengthens us for the long term, positioning us well to return to growth once travel restrictions lift.”