Travel firm Tui has warned that up to 8,000 jobs will go as it seeks to cut costs by 30% because of the coronavirus pandemic.
The firm said its turnover and earnings would be significantly lower in the current financial year, with cost savings only partly compensating for the slump.
Tui has been bolstered by a €1.8bn (£1.6bn) state-backed loan in Germany.
It was forced to cancel the majority of its travel programme in March.
Travel restrictions across Europe and further afield mean that the crucial summer season is still in doubt, leaving millions of holidaymakers unsure of their plans.
In the UK, the Foreign Office is still advising against all non-essential foreign travel, with no indication of when the policy might change.
On Tuesday, Health Secretary Matt Hancock said it was unlikely that “big, lavish international holidays” were going to be possible this summer.
“We are targeting to permanently reduce our overhead cost base by 30% across the entire group. This will have an impact on potentially 8,000 roles globally that will either not be recruited or reduced,” Tui said in a statement.
Tui normally employs 70,000 people during the summer holiday season and 60,000 in quieter months.
It said its restructuring would affect its airline business and would also involve selling off “non-profitable activities”.
Tui added that it was ready to resume providing holidays this year, using new social distancing and cleaning measures.
“The demand for holidays is still very high. People want to travel,” said chief executive Fritz Joussen.