Tourism Holdings has confirmed today that 64 jobs will go at its Hamilton-based manufacturing business Caravans International Munro due to shrinking demand.

The business is bleeding money; in the six months to December Ci Munro reported a loss of $3.2 million.

Tourism Holdings responded by cutting 20 jobs at Ci Munro in February but the worsening outlook for the industry meant more drastic action needed to be taken.

Tourism Holdings chief executive Grant Webster made the announcement today after a meeting with workers and union representatives yesterday.

“This decision has been based solely on the current global economic conditions and lack of demand for the recreational vehicles, private motor-homes and caravans the company produces,” he says.

“It is important to note that the decision is not a reflection on the team at Ci Munro.”

He says the feedback process over the past week, including the open forum yesterday, has provided an opportunity to improve aspects of the exit process for laid-off staff, including the support provided for those looking for new jobs.

The reduction in the size of the business is based on expected volumes over the next 12-18 months, Mr Webster says.

“The changes whilst difficult place the business on a much more secure footing and whilst nobody can predict the future we are here to support this business and we will do so with a positive outlook.”

The latest announcement of job losses comes just one day out from the release of new Statistics New Zealand figures expected to show a marked increase in unemployment from 4.7% in December to over 5% in March.