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Tuesday, March 2, 2010

JAL plans to cut 5% workforce through early retirement

According to Nikkei, Japan Airlines plans to cut 2,700 positions, roughly equals to 5% of its workforce, through early retirement scheme. First target group? Flight crew and ground staff managers.

According to the report, 1,700 of those positions are from the core unit, JAL International (i.e. the airlines itself) and the rest from other subsidiaries. JAL will start with 400 flight crew and ground staff managers. Then extend this to other group of employees. The retirement will be effective on April 30 and all associated costs will be booked as extraordinary loss in the next fiscal year.

JAL has to cut 1/3 of its workforce as part of the restructure. This translates to roughly 15,700 positions...So there are still 13,000 employees have to let go. Selling off non-core units will eliminate 10,000 positions. So somehow JAL still have to cut 3,000 more employees somewhere.

Related Posts:
Rumor: JAL proposed 5% pay cut and no bonuses this year
JAL to axe 15,000 staff by March 2011

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