Lufthansa’s Swiss unit plans 1,000 job cuts over two years through attrition

In this news, we discuss the Lufthansa’s Swiss unit plans 1,000 job cuts over two years through attrition.

VIENNA (Reuters) – Lufthansa unit LHAG.DE Swiss International Air Lines plans to cut around 1,000 jobs over the next two years through voluntary measures rather than layoffs, its outgoing chief executive Thomas Kluehr said in a published speech Saturday.

The Swiss government has given the airline more than one billion euros ($ 1.17 billion) in loan guarantees to help it cope with the air transport collapse due to the pandemic. Like many of his peers, he decided to downsize his staff and fleet.

“We initially rely on three socially acceptable measures: a hiring freeze, part-time models with pay cuts and early retirement,” Kluehr told the newspaper Schweiz am Wochenende, adding that on the basis of the fluctuations of staff in recent years, it should be possible to reduce 1,000 jobs without layoffs.

Swiss and Edelweiss Air, a much smaller airline, have 10,475 employees, according to the Lufthansa Group’s second quarter financial report. Switzerland has around 9,500 employees, said Schweiz am Wochenende.

Kluehr, whose successor has not yet been announced, said the current crisis in the airline industry is expected to last three to five years. In terms of job cuts, a lot would depend on how quickly the market recovers, he added.

“If, in the medium and long term, we foresee a 20% reduction in activity in Switzerland – and that is what we expect at the moment – then the 1,000 jobs would be enough, yes,” said Kluehr.

“If we see in the first quarter, looking towards the summer, that the situation does not improve, especially on the long haul, then the 1,000 jobs will not be enough.

Report by François Murphy, edited by Louise Heavens

Original © Thomson Reuters

Originally posted 2020-10-03 06:06:09.

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