British Airways-owner IAG has announced 4,500 job cuts at Iberia as part of an anticipated restructuring of the Spanish carrier.Iberia is reducing its fleet by 25 aircraft and reducing its capacity by 15%, with the airline focusing on the most profitable routes, of which there are apparently very few, if any, at the moment.
The plan aims to stem Iberia’s cash losses by mid-2013. Iberia has been suffering record losses and currently has no profitable markets. The proposed 4,500 job losses are less than the unions had been expecting, a figure of 7,000 being earlier quoted as highly likely.
In addition to job losses, the restructuring, seen as vital to the survival of the carrier, will also involve permanent salary adjustments, which one can only assume are in a downward direction.
The airline now has until January 31st 2013 to agree the cuts with the unions. The reduction in staff of 4,500 will, apparently, safeguard the jobs of a further 15,000 employees.