By Kyle Jonas 07/03/2020 405 views

According to multiple sources, Air France "aims to present a plan to trade unions to cut just over 6,500 jobs over the next two years." In addition to the 6,500 employees set to be released, which includes pilots, flight attendants, and ground staff, HOP! which is a small airline that is owned by and part of Air France, plans to cut around 1,000 jobs. 

 

Air France Boeing 777-300ER
Air France plans to cut 6,500 jobs by 2022. Phan Phuong Phi

 

The flag carrier of France is cutting capacity and portions of their route network that has recently taken a toll on the company's profit, due to decreased travel as a result of the Covid-19 pandemic. Although some employees would be let go, around 3,500 of the lost jobs would be from retirement. 

 

Air France CEO Ben Smith has "sought to cut costs, improve French labour relations and overcome governance squabbles between France and the Netherlands, which each own close to 14% of the group." KLM does not trust the French airline, and is worried they will abuse the Dutch funds. Both sides of the partnership have had disagreements in the past; the agreement has had a history of spontaneous policies being enacted without permission from the other side. You can read more about the situation here: https://seekingalpha.com/article/4356353-air-france-klm-political-mess

Air France Boeing 777-300ER
Air Frane and KLM are having a dispute. Isaac Kho

 

Additonally, British Airways plans to cut around 12,000 jobs, EasyJet is cutting over 4,000 jobs, and the Lufthansa group is also cutting the equivalent of 22,000 full time jobs, or around 16% of their staff. 

 

What are your thoughts on AIr France cutting so many jobs?

https://www.reuters.com/article/us-air-france-klm-layoffs-idUSKBN24124K