Jobs will be cut after the merger of a major travel group.

Some roles are expected to be axed at Crawley after the merger of TUI Travel and TUI AG.

The owner of Thomson and First Choice has agreed to merge with its German parent company to create the world's largest tour operator, valued at £5.2 billion.

TUI Travel, which serves 30 million customers, will merge with Germany's TUI AG, which owns 230 hotels with more than 155,000 beds and seven cruise ships.

The combined business will be listed on the London Stock Exchange but headquartered in Germany.

TUI Travel chief exectuve Peter Long admitted some jobs would have to go at TUI’s Crawley headquarters but insisted there were “not going to be a lot” of positions axed.

The two companies expect £36m of annual savings through ‘corporate streamlining’, as well as tax savings of £28m and £16m from integrating TUI Travel’s ‘inbound services’ division into mainstream operations.