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Thursday, 28 May 2020 07:00 pm

EasyJet plans to cut 4,500 jobs to stay competitive after coronavirus crisis

Britain’s easyJet plans to cut up to 4,500 jobs and shrink its fleet to adjust to the smaller travel market which is forecast to emerge from the coronavirus crisis.

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EasyJet, which employs more than 15,000 people in eight countries across Europe, is moving later than others in announcing job cuts as a result of the coronavirus pandemic, which has brought airlines across the world to their knees.

Most have been forced to cut jobs, including more than 15,000 in Britain, as they prepare for a market which is not forecast to return to 2019 levels until 2023.

EasyJet, which said on Thursday it would launch a consultation process with staff, also plans to shrink its fleet by 15% to 302 planes by the end of 2021 and to cut costs through deals with airports, maintenance suppliers and in marketing.

Shares in easyJet rose 6% to 751 pence, their highest level since mid-March, before coronavirus grounded its fleet.

“Exactly the kind of overhaul the cost base needs,” Bernstein analyst Daniel Roeska said of easyJet’s cuts, which go deeper than those of Ryanair and Wizz Air, who have said they will lay off 15% and 19% of staff respectively.

EasyJet said it expects to be flying around 30% of its capacity by the fourth quarter, which leaves it trailing Ryanair which is planning to fly 40% in July.

Read here

Tags EasyJet COVID-19 crisis Jobs Britain Recession Pandemic Coronavirus

Neha Pandey

Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.


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