Air France strongly deny job cut report
December 15, 2011
Air France has strongly denied reports in the French press this morning that it is planning to axe 2,000 jobs as part of an €800 million cost reduction plan.
The report, in the La Tribune newspaper, said the cutbacks would be presented at a meeting of the airline’s board on 11 January.
The 2,000 job cuts would be added to more than 4,000 posts which have not been renewed at France’s flag-carrier over the past 15 months, which together represents 10% of Air France’s total workforce, the report said.
Other cost-cutting measures will include a freeze on salaries and a significant reduction in investment, particularly in IT services.
There will also be fewer deliveries of new aircraft in 2013. However, those for 2012 are going ahead as planned because of contractual obligations.
A second cost-cutting plan will be presented in May-June next year, and will focus essentially on the restructuring of Air France’s heavy loss-making short and mid-haul services and could also extend to the cargo division which has plunged back into the red.
Air France told IFW: “The cost-cutting measures to be presented mid-January to the company’s board and to the staff and their representatives are currently been drawn up. Nothing has been finalised on at this stage.
“As has already been made clear, this first tranche of measures will not affect jobs.
“Structural measures will not be announced until next June, with the aim of only impacting on jobs as a last resort,” the company said.
Air France also stressed that the number of jobs to affected through natural wastage was 800 and not 2,000 as the report claimed.
Courtesy of IFW
