Due to the prevailing financial crisis caused by the outbreak of COVID-19, the British Airways has announced to its employees the new “restructuring” strategy that will hit hard most of them, as they are bound to sack 12,000 of their workforce.
International Consolidated Airlines Groups (IAG), the parent firm, which also hold the ownership of Iberia, Aer Lingus and Vueling, stated that they have undergone a loss of €535m, maximum of it being connected to BA in the first quarter of this year. They are predicting that this may further worsen in the second quarter of 2020 because of the nationwide lockdowns.
British Airways has 45,000 staffs working under it, among which there are 16,500 cabin crew members and 3,900 pilots. Union leaders have censured this plan and remarked that the airlines should have worked to ascertain government help to keep more jobs in safe hands.
The Chief Executive Officer (CEO) Alex Cruz has reported that they have left no stone unturned to safeguard cash, including compromising contracts and searching for more choices for its personnel.
Brian Strutton, General Secretary of pilot’s union BALPA, has informed that it’s quite shocking to hear this from BA since previously they claimed themselves “wealthy enough” to endure this outbreak and had refused any kind of government help. He further added that they would fight to save each job.
British Airways have already availed the British COVID-19 job retention procedure to furlough 22,626 workers.