Hays Travel is to cut up to 878 jobs, the firm has announced.
The job losses make up almost 20% of their total workforce of 4,500 people.
The travel company said the Government’s decision to advise against non-essential travel and reimpose quarantine requirements for holidays to Spain “triggered the cancellation of hundreds of thousands of holidays”.
Hays took failed holiday company Thomas Cook last year, taking on 2,330 former employees and hiring a further 1,500 to help fill its new stores, and for its headquarters.
The family-run travel company bought the 178-year-old tour operator after it fell into liquidation in September.
But now they have been forced to cut numbers following the coronavirus pandemic - and the ongoing travel restrictions.
Owners John and Irene Hays said: “We are devastated that after all of our efforts and the huge investment we’ve made we now face losing some of our valued employees, through no fault of their own.
“Following the decision to ban travel to Spain and the changes in furlough conditions coming at the same time, we have had no choice.
“We are also devastated for everyone who may lose their job and we will do all we can in consultations to help them, as we focus on retaining as many people as possible and rebuilding consumer confidence through our renowned friendly and knowledgeable customer service.”
Hays said it has had “no significant redundancies in its 40-year existence”.
It is consulting with 344 employees who are training as travel consultants and 534 who work in its foreign exchange division.
Rival firm Tui announced last week it is to close nearly a third of its high street stores in the UK and the Ireland because of the coronavirus pandemic and in response to changes in customer behaviour.
It plans to move 70% of the 900 affected jobs to a new “home-working sales and service team”.
