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SAirGroup to cut jobs
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June 5, 2001: 4:09 a.m. ET
Swissair's parent announces overhaul and job cuts after record losses
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LONDON (CNN) - Swissair's owner SairGroup said on Tuesday it plans a major restructuring and job cuts to turn the airline around after it posted record losses.
The company said it aimed to cut at least 500 million Swiss francs ($279 million) from costs in the second half of the year. The company said staff reductions were inevitable, but did not give a figure.
The Zurich-based company last month posted a higher-than-expected annual net loss of 2.9 billion Swiss francs, or $1.7 billion, after the "worst year in the history of the group."
SAirGroup, which ditched its chief executive Philippe Bruggisser on January 23, also plans to offload stakes in the various airlines, reversing an expansionist policy.
"Our Group continues to operate in a difficult business environment, and we need to take swift and efficient action to return it to sound business health," said Chief Executive Mario Corti.
The Swiss company, formerly a byword for efficiency, will reduce costs, achieve an improvement in revenues and cutback investments.
Management of the company will also be targeted, a statement said, as "unnecessary hierarchical levels and overcomplex structures in all areas of the group" are abolished.
"These actions will demand considerable flexibility from the managers concerned, along with unconditional willingness to accept new challenges," SAirGroup said.
SAirGroup shares rose more than 1 percent to 134.50 Swiss francs in Zurich trading after the restructuring was announced. 
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