09 April 2009

BA: More Staff Axed = Greater Costs

BA is issuing another profits warning. This time it is blaming 3 things - increased losses as a result of the downturn in the US economy, the Snow in February (wrong type of snow???) and increased staff cuts costs.

BA is not done yet trying to undo a strong dependence on Corporate Premium Cabin traffic by cutting more heads. Hard on the heels of the massive head count reductions at Waterside last year, 450 Management heads went last year. Now here comes another 350 heads that will go.

As The Professor understands it 100% of BA's EMEA based staff have been offered voluntary redundancy. It will be interesting to see who takes advantage of this.

One thing is for sure - the lines for lunchtime feast have definitely become shorter.

Cheers

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