Ryanair Plans Hundreds of Job Cuts to Counter Brexit, Max Delay
2019-07-31 Bloomberg
https://www.bloomberg.com/news/articles/2019-07-31/ryanair-ceo-says-hundreds-of-jobs-on-the-line-over-brexit-max
Ryanair Holdings Plc is poised for one of the deepest rounds of job cuts in
years as Europe’s biggest budget airline responds to falling earnings and
the grounding of Boeing Co.’s 737 Max jetliner.
In a video message to staff seen by Bloomberg, Chief Executive Officer
Michael O’Leary said the carrier has an excess of more than 500 pilots and
about 400 flight attendants. On top of that it will need around 600 fewer
people in those categories next summer than it had envisaged before the Max’
s idling.
A spokesman for Dublin-based Ryanair confirmed the video’s authenticity and
said about 900 current staff could be affected. The carrier had about 5,500
pilot posts as of March, of which about 10% appear to be at risk based on O’
Leary’s comments. The carrier employs just over 9,000 flight attendants.
“We over the next couple of weeks will be doing our very best to minimize
job losses, but some are unavoidable at this time,” O’Leary said.
Ryanair had already warned it would close some European bases and shrink
others in response to the Max crisis and concerns around Brexit. Boeing Co.’
s 737 Max was grounded following two fatal accidents and there’s no firm
date when regulators will allow the resumption of flights.
The cuts will test Ryanair’s ability to offload staff after O’Leary agreed
to recognize unions at the end of 2017. The CEO had previously warned that an
organized workforce would impinge on the flexibility needed to quickly
respond to shifts in the market.
The airline posted the video Monday after announcing a 21% drop in quarterly
earnings hurt by higher fuel costs, faltering economies and a fare war. In
the address, an apologetic O’Leary tells staff that redundancies will be
detailed by the end of August once the carrier