Air France to slash thousands of jobs
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Air France-KLM is expected to lay off between 2,500 and 2,600 employees in a bid to slash costs, a trade union leader said Tuesday. The company is struggling to turn its business around amid a weak economy and competition from low-cost carriers.
Air France-KLM might cut between 2,500 and 2,600 jobs in a bid to reduce costs, according to an Air France trade union leader.
The Franco-Dutch airline has posted losses in the second quarter as its medium-haul and cargo operations continued to suffer from the weak economy, and hopes to strengthen its position by paying down debt and reducing staff costs.
“Management told us 2,500 to 2,600 jobs will be cut,” Didier Fauverte, leader of the Air France CGT trade union, said Wednesday after a company meeting.
An Air France spokesman refused to confirm the figure.
The group said last Friday it had lost 163 million euros ($215 million) in the second quarter, compared with an 897-million-euro loss a year earlier, when accounts were hammered by the cost of a plan to shed about 10 percent of the carrier’s workforce.
Revenue stagnated in the second quarter as slightly higher passenger traffic was offset by lower revenue per passenger.
Air France-KLM is struggling to compete against low-cost carriers and has said its three-year turnaround plan is on track despite “the persistently tough economic environment.”
The job reductions are expected to come into effect early 2014.
(FRANCE 24 with wires)