Carnival Cruise Line is taking steps to terminate and / or not renew the employment contracts of several thousand officers and crew members across its fleet, allowing several crew members who wish to remain anonymous.
Today, several crew members submitted internal records showing Carnival is sending up to 7,000 resignation letters to Carnival officers and crew members. Up to eight captains (masters), five captains, five guest service managers, six chefs and six hotel directors are among the dismissed top ship employees. Carnival emailed these letters to officers and crew members who are at home on vacation or otherwise waiting for a ship deployment if the CDC allows travel from US ports. Carnival plans to make individual calls to follow up on some of the cancellations.
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A number of crew members who were sent home “on vacation” expressed frustration that they had not been employed for the past five or six months because they felt they should be ready to get back on a carnival ship at short notice to get in. One crew member who contacted our office said, “Why didn’t Carnival notify me in April so I can find another job? It left me and my family with two young children with no money. “
Last March, Carnival Corporation laid off hundreds of employees due to the coronavirus pandemic. The carnival eliminated and put nearly 1,600 employees ashore on leave, and reduced compensation for many employees who were not fired.
The current round of layoffs represents slightly more than 20% of the approximately 33,000 ship employees who are employed in Carnival Cruise Line’s declining ship fleet.
Carnival Corporation recently announced that it is selling up to eighteen cruise ships from its fleet, including four ships operated by Carnival Cruise Line, including the Carnival fantasy, carnival inspiration, carnival performance and Carnival fascination.
The mass layoffs are a glimpse into Carnival’s financial problems. According to an 8K form Carnival filed with the SEC last week, Carnival’s cash burn for the third quarter of 2020 was $ 770,000,000. That ended Carnival with only “$ 8,200,000,000 in cash and cash equivalents”. As of August 31, 2020, “Approximately 45 percent of guests affected by the company’s schedule changes have received upgraded FCCs (Future Cruise Credits) and approximately 55 percent have requested refunds.”
“Total customer deposits as of Aug. 31, 2020, most of which are FCCs (Future Cruise Credits), compared to total customer deposits of $ 2.9 billion as of August 31, 2020. May 2020. “
The bottom line is that loyal cruise fans are essentially giving Carnival billions of dollars in free credit. Many of the people have undoubtedly lost their jobs or financed their cruises.
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