Finnair cuts 1,200 jobs in bid to restore profitability

Finnair cuts 1,200 jobs in bid to restore profitability

The job cuts are part of a strategic effort to restore profitability to pre-pandemic levels and transition to operating with a smaller capacity.

Russia's invasion of Ukraine and the closed Russian airspace have a significant impact on our business. In addition to other actions to restore Finnair's profitability, we have to discuss measures that are the most painful for our employees, said Topi Manner, chief executive of Finnair.

The airline said it will consider setting up a social support programme for employees who could lose their jobs due to the downsizing. The negotiations are scheduled to begin on Monday, October 5th.

Finnair intends to balance its route network in September and to downsize its fleet as part of a strategic re-think necessitated by the war in Ukraine. The airline has set a goal of reducing unit costs by 15 per cent from the level of 2019 and achieve comparable earnings before taxes and other adjustments of five per cent by 2024.

The company has implemented cost-cutting measures worth over 200 million euro over the past 30 months.