French flag carrier Air France is reportedly planning to cut 7,500 jobs from its sister company Air France Hop.
The move is to help the carrier adapt to the current situation after being affected by the Covid-19 crisis.
According to Air France, the level of activity last year is not expected to be seen before 2024.
A part of Franco-Dutch airline holding company Air France-KLM, the company said it lost €15m a day during the height of the Covid-19 pandemic crisis. The company’s revenues declined by 95%.
Of the total number, 6,560 or 16% of Air France jobs will be eliminated by the end of 2022 and Air France Hop will lay off 1,020, employees in the next three years.
Air France and its sister company currently have a total of 41,000 and 2,420 employees, respectively while the former expects more than 3,500 natural departures during this period.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe move follows after Air France-KLM and Air France secured €7bn in funding in April to maintain financial stability amid the pandemic.
The company said in a statement: “Air France and Air France Hop are working together with the unions to implement plans that give priority to voluntary departures, early retirement arrangements and professional and geographical mobility.”
It will present the restructuring plan later this month along with Air France-KLM Group’s plan.
Junior Economy Minister Agnes Pannier-Runacher told Sud Radio: “A successful labour reorganisation is one where there are no forced departures.”
