RCI Cuts 500 Jobs

October 16, 2001

As foreshadowed by company executives a few weeks ago, Royal Caribbean/Celebrity has announced it has cut 500 jobs. The employee layoff, which only involves shore side staffers, actually impacts 400; 100 open positions were eliminated as well. The cost-cutting move includes both Royal Caribbean and Celebrity Cruises.
“Like other cruise lines, we were severely impacted initially by the events
of September 11,” says Royal Caribbean p.r. chief Lynn Martenstein. “We’ve
taken a number of cost saving measures, some more obvious than others.”
The criteria for the cost-cuts, which included an embargo on philanthropic
contributions through 2002 and postponement of new informational technology
and automation projects, involved one major caveat, Martinstein says. “It
could not have a negative impact on the cruise product or the experience the
guest has on a cruise.”
Beyond cost-cuttings -- or perhaps because of them – “the company is very
healthy,” she adds. “We’ve taken a number of steps in the past few weeks
that strengthens our position in the current environment. We’ve taken cost
cutting measures, redeployed ships from Europe to lucrative domestic
markets.”
Otherwise, it’s life as usual at both Royal Caribbean and Celebrity.
Celebrity’s Summit has been launched (and raised $73,000 during preview
cruises which is being donated to the American Red Cross’ Disaster Relief
Fund) and the 3,100-passenger Adventure of the Seas will be unveiled in
early November (and will be sailing out of New York, which makes it the
first major cruise ship to call there). Celebrity’s Constellation, due in
April, is on track, Martinstein says, for an on-time delivery, as is Royal
Caribbean’s Brilliance of the Seas, despite a minor laundry room fire that
occurred last week while the vessel was in the shipyard.