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BBC News Online: Business


Sunday, 9 September, 2001, 09:47 GMT 10:47 UK

British Airways confirms job cuts


BA planes lined up at an airport
BA says it has not yet decided how many jobs will go
Europe's largest airline, British Airways, has confirmed that it will follow up this year's 1,800 job cuts with further cuts next year and beyond.

But it has dismissed UK press reports which said 2,000 jobs will go next year and 8,000 jobs will go in the next three years as "speculation".

British Airways chief executive Rod Eddington
"We've committed to cut jobs beyond March 2002, but we haven't yet set a level," a spokeswoman said.

The airline has been hit by a fall in passenger numbers and a slump in profits, forcing chief executive Rod Eddington to take action.

A Sunday Times report predicted that Mr Eddington will slash BA's 58,000 strong workforce by between 10% and 15% over the next three years to cut costs by at least £600m.

Both the Sunday Times and the Observer predicted that at least 2,000 workers losing their jobs in 2002.

The Observer also said BA has plans to ground five jumbo jets and drop a whole range of routes, both long-haul and short-haul.

Previous cuts

Last week, British Airways told unions it is cutting 1,800 jobs by the end of the financial year.

The company said it aimed to achieve the headcount reduction through voluntary redundancies and natural wastage.

But a spokesman said the company could not rule out compulsory redundancies.

Engineers, cabin crew and customer services staff will be among those facing cutbacks.

At the time, a BA spokesman said the staff reductions were part of an ongoing plan to cut costs.

He said BA had taken 3,000 jobs out of the business in the last financial year through so-called natural wastage - that is; it has not replaced 3,000 people who have quit or retired.


Related to this story:
BA risks FTSE rejection (07 Sep 01 | Business) British Airways cuts 1,800 jobs (04 Sep 01 | Business) British Airways profits fly (22 May 01 | Business) BA chief attacks Heathrow (25 Apr 01 | Business) R.I.P. British Airways' funky tailfins (11 May 01 | UK) BA flies back in to profit (05 Feb 01 | Business) British Airways 'to axe regional flights' (05 Nov 00 | Business) Fuel costs push air fares up (15 Sep 00 | Business) British Airways fares shake-up (10 Jan 01 | Business)


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