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Lastminute cuts 350 jobs
And shuts 10 offices despite profit rise

By Jo Best

Published: Friday 06 August 2004

Lastminute.com is to cut 350 jobs and 10 of its offices in a drive to cut operating costs by 10 per cent in the next year.

The 350 job losses will significantly reduce Lastminute.com's 2,400 strong workforce and come after a acquisition-laden few months that have seen the company buy up lastminute.de, Online Travel Corporation and First Option, among others. The staff lay-offs are necessary because the acquisitions have created too many identical positions across the business, according to the company.

No details about the types of jobs that will be made redundant were released because the online travel agent is still consulting with its staff. A full announcement is to be made in September.

The company is also to shut 10 offices, six of which will be in the UK.

The job cuts were announced along with the company's quarterly results. While Lastminute.com posted pre-tax profit of £4.3m - an increase from the corresponding quarter last year's £4.1m - shares dropped at the news of job cuts.