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BA to axe one-third of managers
British Airways has revealed plans to axe almost 600 management jobs in a move that will save the carrier £50 million.
Chief executive Willie Walsh said 35% of the airline’s 1,715 managers – many of whom he described as “extremely talented” – will go by March 2008.
Announcing his first cost cutting measure since taking over from Rod Eddington, he explained that costs just be driven down.
“I said when we reported our second quarter financial results last month that our costs in most areas were up and that, as a result, we need to re-energise our efforts to deliver a competitive cost base,” he said. “We must lower our costs so that we can funs future investment in our business.”
The job losses will be split between senior and middle management.
Under the restructure plans, 207 – 50% – of BA’s 414 senior managers will go, 94 of them by next March and the remainder by March 2008.
At middle management level, the number will fall from 1,301 to 911.
Walsh said the cuts will go some way to achieving overall savings of £300 million by March 2007.
“We are restructuring the airline to remove duplication, simplify our core business and provde clearer accountability,” he said. “It is essential that we streamline our business further and I believe it is right that we have started by looking closely at the number of senior managers that we need to deliver a sustainable, profitable future.”
He added that the decision to axe so many managers had been tough.
“We have extremely talented managers and they have led the way in transforming our company during the last four years since the tragic events of September 11.”
Report by Steve Jones
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