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Iberia announce 4'500 job cuts

Fri 9th Nov 2012
Iberia announce 4'500 job cuts

Iberia Airlines has announced that up to 4'500 jobs will be cut over the course of the next 3 years due to significant losses sustained over the last 9 months of the year.

The cut positions equate to around 25% of the company's 20'000 employees in Spain, but confirmed tha a minimum of 15'500 would be protected.

The airline also announced that around 25% of it's fleet would be cut, together with existing routes and flight frequencies being reduced by around 15%.

The news has angered Trade Unions, who staged numerous lengthy strikes earlier this year in protest over the creation of budget spin-off Iberia Express. Striking Pilots from the SEPLA union had concerns that creation of the low cost airline would result in job losses.

Whilst the IAG Group - created by the merger between British Airways and Iberia last year - as a whole returned a 237 Million Euro net profit in the first three quarters of the year, Iberia racked up losses of almost 1.7 Millon Euros per day

Whilst the Unions may claim that their fears have been proved correct, the series of strikes cost the IAG Group an estimated 30 Million Euros, which undoubtedly contributed to the huge financial losses.

Meanwhile, the IAG Group yesterday confirmed their interest in expanding their "low-cost" interests, by announcing their intention to assume full ownership of Vueling Airlines.

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