Air France offers employees voluntarily buyouts to cut overhead
AIR France is offering incentives to 8,300 staffers who voluntarily quit to cut costs without causing a political backlash, Bloomberg reports
23 June 2020 - 19:00
The buy-out offer comes after receiving a massive state bailout. Air France-KLM wants all terminated employees to receive a portion of the EUR7 billion (US$7.8 billion) bailout from the French government.
Air France plans to seek the voluntary exit of 300 pilots, 2,000 cabin crew, and 6,000 ground staff. If fully implemented, will cut 17 per cent of staff.
The full plan will be unveiled in the upcoming weeks as part of a strategic review order from CEO Ben Smith. Previously, British Airways received backlash after terminating 12,000. Lufthansa plans to cut 22,000.
The airline is also agreeing to a 40 per cent cut in domestic capacity by the end of 2021 to lower carbon emissions.
Meanwhile, Mr Smith is under pressure to avoid the enforced dismissals. Junior Transport Minister Jean-Baptiste Djebbari feels the domestic revamp can be done without social suffering. Adding it should include voluntary departures.
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