Air France plans to cut 5,000 jobs
Paris, June 22, 2012
French carrier Air France unveiled plans to cut more than 5,000 jobs by the end of next year as part of an effort to slash costs and debt to return to growth in the face of tough market conditions in Europe and political pressure at home.
The job cuts come as the world's airline industry grapples with the need to consolidate because of limited growth prospects, rising costs and the effects of the euro zone debt crisis.
Air France, under the watchful eye of France's new Socialist government, pledged to try to avoid forced layoffs by encouraging early retirement, voluntary departures, part-time working and work-sharing.
But the carrier warned forced redundancies would be "unavoidable" if unions refused to support management's plans.
Labour Minister Michel Sapin said the government was encouraging dialogue between management and unions aimed at returning the company to financial stability without mass layoffs.