Transport for London to furlough 7,000 staff
Transport for London (TfL) is placing 7,000 staff on furlough – around 25% of the workforce – as it warns of the “huge financial impact of coronavirus”.
Since London entered lockdown on 23 March, Tube journeys have fallen by 95% while journeys on buses are down 85%; good news when it comes to slowing down the pandemic but bringing a 90% slump in fares; TfL’s main source of income.
The organisation said furloughing staff, effective Monday 27 April, would save an estimated £15.8m every four weeks, although it warned this would only partly reduce the impact of coronavirus and said it would also need to work with the Government on wider support.
All staff required for recovery planning and delivery are being retained.
London’s Transport Commissioner, Mike Brown said: “We have significantly cut our costs over recent years but nevertheless the success of encouraging the vast majority of people to stay at home has seen our main revenue, fares, reduce by 90%.
“Our work with the Government about the support that we need are ongoing and are constructive. We hope for an urgent agreement so that we can continue to provide the city with the vital transport it needs now and going forward.”