More Cuts To Come at Flybe
Exeter, UK-based Flybe plans to slash another 500 jobs as part of a continuing cost-cutting exercise centered on removing excess capacity and improving worker productivity. The announcement follows an earlier round of cuts that saw Flybe shed 590 jobs this year. The company employed some 2,700 people at the end of September.
“It was clear to me that the existing Phase 1 and 2 cost savings were necessary, but we simply needed to do more and do it immediately,” said Flybe chief executive Saad Hammad in a statement. “The business needed action now and so today we are explaining our next phase, which encompasses a review of everything we do and how we do it…Unfortunately, there is a proposal for further redundancies.”
A crucial part of the plan involves relinquishing its Gatwick Airport slots by March next year. The airline has already eliminated what it calls its divisional structure in the UK as part of a plan to establish an integrated organization. It added that it has begun negotiating “vigorously” with all its “key” suppliers to review trading arrangements and reduce costs.
The company said it expects the actions to save £7 million ($11.2 million) this year and a further £26 million ($41.6 million) annually starting next year.