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BA confirms massive cost-cutting programme
British Airways has announced that it is to reduce staff numbers through “unpaid leave, part-time working, early retirement and voluntary severance” – but has stopped short of releasing exact numbers. The carrier has set itself a savings target of GBP300 million over the next two years, by “targeting improvements to working practices and seeking more efficiencies to lower unit costs”. BA admits that its plan could include a 30% reduction in employee costs at head office and support functions, and 15% in operational areas, but states that it “envisages” its current flying programme being maintained. Chief executive Rod Eddington said: “We must make the necessary changes in partnership with our staff and unions, and without impacting on the service our customers have rightly come to expect. We have shown we are able to meet our targets through voluntary means and that will remain our aim. The last two years have been about survival; now we want to be in a position to prosper.” Media reports are suggesting the cuts will mean large numbers of redundancies; estimates are varying between 3,000 and 4,000 over the next 12 months; that is, on top of the 13,000 redundancies already made under the carrier’s Future Size and Shape programme.
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