HOLIDAY company Thomson is to cut 800 jobs as part of a streamlining operation.

The changes will mean a reduction in the number of the company's Lunn Poly and, possibly, Callers Pegasus high street travel agency shops.

It ruled out a campaign of shop closures last night, but said the travel agency network would continue to be reduced gradually as leases on shops expired.

A spokeswoman was unable to say how many jobs would be lost in the North-East, but said mainly office jobs would be going in Thomson's Coventry and London bases.

Thomson has also decided to change the name of its holiday airline Britannia to Thomsonfly, the name used by the company's recently-launched low-cost carrier.

The job cuts will affect Thomson Holidays, Britannia and Lunn Poly.

Thomson said it was reviewing its various holiday brands, such as Magic, Crystal and Simply Travel, and there was a possibility of some of these brands being merged.

A Thomson spokeswoman said yesterday: "The days of everyone walking into a travel agents to book their holidays are gone.

"We have to take into account the fact that people book on the Internet or take independent holidays. The whole shape of the package holiday is changing.

"However, the package holiday will remain the core part of our business. We will meet demand for more dynamic packages. We want to sell more holidays direct and through the Internet and our call centres."