Car firm retrenches as business "noticeably weakens"
Avis Europe has made 315 employees, about 5% of its total workforce, redundant.
It was one of a raft of measures the car rental company has introduced as it said business had "noticeably weakened" in the fourth quarter.
Other measures include the closing of "low margin" rental offices, the transfer of staff from the UK headquarters to the Group head office in Bracknell, Berkshire, a freeze on recruitment, faster release of a seasonal staff and cuts in spending.
The company, which owns the Avis and Budget brands, said business had continued at 2007 levels during the first three quarters of 2008.
But added: "However, volumes have noticeably weakened in the fourth quarter to date."
It said it had raised its rental fees for non-contract customers significantly in 2008 and planned a further increase in 2009.
It said it was also now in talks with contracted clients to raise their prices.
Avis Europe said it was also keeping its fleet for longer periods than usual in certain circumstances.
The car company said the re-structuring would cost €23m in a full year, mostly for redundancy payments.
But it said the measures would save it €16m a year in the future.
Pascal Bazin, Avis Europe's ceo, said: "We have taken decisive action to raise pricing, reduce costs and maintain flexibility.
"Together with the ongoing improvements in our product and customer service levels, these actions will help position the business for the likely continued difficult conditions in 2009 and also for the longer term."
www.avis-europe.com