Thomas Cook in talks to cut costs

FRANKFURT (Reuters) - Thomas Cook (TCG.L), Europe's second-biggest travel firm, is in talks with its works council over planned cost cuts, the company said on Saturday.

"But as long as talks with the works council are ongoing, it would be inappropriate to discuss details publicly," the company said in a statement.

German weekly Der Spiegel had earlier reported Thomas Cook planned to cut costs for staff, IT and sales and could cut up to 250 jobs.

The magazine had also said Thomas Cook could replace customer service workers at holiday destinations with a telephone hotline that travellers can call.

A person familiar with the matter told Reuters that Thomas Cook, formed in 2007 through a tie-up of German retailer Arcandor's (AROG.DE) travel unit and Britain's MyTravel, planned to reduce headcount by attrition and retirements.

The company has joined rivals including TUI Travel (TT.L) in cutting the amount of holidays it has on sale to offset slumping demand for travel due to the global economic crisis.

(Reporting by Angelika Gruber; Writing by Maria Sheahan; Editing by Keiron Henderson)