BA plan to cut 597 jobs

By Administrator |

British Airways was licking its wounds yesterday after announcing plans to re-structure its business with a 35% reduction in the number of its 1,715 managers by March 2008.

This effectively translates into a 50% reduction in senior managers, from 414 jobs to 207 and a reduction of 30% in middle management from 1,301 jobs to 911 jobs if the programme can be agreed. This brings the total number of jobs on the block to 597.
Willie Walsh, BA's relatively new Ceo said yesterday that it should come as no surprise to anyone that the airline's cost base should be addressed first: ‘We must lower our costs so that we can fund future investment in our business. I am confident that these measures, however difficult, will help to build a robust British Airways and one that will benefit from sustained profitability. This action will enable us to carry out the investment we need to make in our business in the coming years in order to deliver a more competitive and efficient airline.’
According to BA the proposed job cuts will save the airline ?50m as part of its drive to achieve a ?300m cost reduction programme by March 2007, announced in January 2004.
The airlines says it plans to carry out the reduction in the number of senior managers in three phases. Phase one will see 94 of the top executives (23%) leave the business by March 31, 2006. Further reductions will continue during the next two years with the 50% target achieved by March 2008.

News in Brief

Saudi Arabia adopts duty free arrivals exemptions

Zakat, Tax and Customs Authority (ZATCA) of Saudi Arabia, has adopted exemption requirements...

International

OUT NOW: June/July issue + Top 10 Airports

The TRBusiness June/July 2024 edition, featuring the Top 10 Airports report, is now available...

The Americas

Avolta expands US presence with 15-year contracts at John Wayne Airport

Avolta is set to grow its presence at John Wayne Airport in Orange County, California, through a...

image description

In the Magazine

TRBusiness Magazine is free to access. Read the latest issue now.

E-mail this link to a friend