EAST Lancashire based tour operator MyTravel is planning to cut up to 700 of its 15,000 UK staff to reduce costs.

The firm says it is entering into a consultation period with employees which "unless savings can be achieved by alternative means, may result in up to 700 redundancies" in the UK.

The group, formerly known as Airtours, said the decision had been taken against a background of "difficult and uncertain" market conditions.

It says: "This is in addition to other efforts which the company is making to reduce costs, including a programme to reduce charter capacity, with a view to adjusting its cost base to better reflect current market conditions."

The company says staff are being briefed by managers today and an exact number of redundancies to be made would not be known for a month.

The cuts are expected "across various businesses in the UK", it says but adds: "It is not blanket across the group, it is in various businesses," he said.

A spokesman says "particularly administration head office-type functions" could be affected but the cutbacks are not just targeted at those roles.

MyTravel has two main administrative centres, its head office in Manchester and an accounting centre in Rochdale.

Commenting on whether the cuts would affect travel agency staff, he said: "It is not directed at front line staff but that doesn't mean they won't be affected. : "Not all businesses will be affected."