Thursday, September 17, 2009

Aeroflot to cut 2,000 jobs -- for now

by B. N. Sullivan

AeroflotRussian flag carrier Aeroflot announced it will cut 2,000 jobs over the next six months. That number represents about 13 percent of Aeroflot's current work force. At least one news report suggests that further cuts may follow.

The AFP news service quoted an Aeroflot spokeswoman who said that 2,000 jobs will be cut by the end of this year or first quarter of next year. However, AFP also cited an item from Russia's Interfax news agency in which a 'company insider' stated that "Aeroflot had already cut 500 jobs and could cut up to 6,000 -- more than one-third of the company's 15,500 employees."

From AFP:
Asked about the likelihood of more sweeping job cuts, [Aeroflot spokeswoman] Danneburg said: "Yes, maybe even more, but for now 2,000."

"The general director has more than once said the staff needs to be thinned, now with the crisis this has become necessary," she added.
The Russian government owns a 51 percent stake in Aeroflot, which is a Sky Team member. The carrier announced in July that its year-over-year profits had fallen by 88 per cent. In June, Aeroflot Cargo declared bankruptcy.