TUI Plans $293M Savings with AI Workflows, But No Layoffs

TUI Group has announced a cost-optimization program worth €250 million ($293 million) with completion targeted for fiscal 2028. The effort focuses on the company’s Markets & Airlines sector and relies heavily on AI-powered improvements and leaner organizational structures.

Program breakdown

Around 40 percent focuses on operational performance. Key components include:

• a greater use of Boeing 737 MAX aircraft that reduce fuel burn,
• more efficient marketing spend based on real-time analytics,
• expansion of AI capabilities for pricing, personalization, and workflow automation.

The remaining 60 percent of projected savings will be achieved by reducing overhead and redesigning internal processes. TUI plans to consolidate operational roles, streamline back-office activities, and rely less on external support teams.

Will this lead to layoffs?

CEO Sebastian Ebel explained that TUI intends to focus on reducing external contractors, rather than direct layoffs.

While the company does not plan job losses tied specifically to the program, TUI acknowledged that automation and AI will gradually reduce manual work, which may lower the number of roles needed in the future.

Broader company context

The cost reduction program comes shortly after TUI reported its record financial results for 2025 and achieved a 20 percent reduction in net debt. The new initiative is designed to build on that progress by improving profitability, modernizing operations, and strengthening the balance sheet.

Photo by Jakub Żerdzicki on Unsplash