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Japan Airlines considering reducing workforce by 10% over next three years

25-Aug-2009 10:29 AM

Japan Airlines Corp is reportedly considering reducing its workforce by approximately 5,000 employees, equating to approximately 10% of its total workforce, in the three years to Mar-2012, through attrition and other steps, including encouraging early retirement and the use of its leave of absence system and selling minor group companies to reduce the Group's head count (Kyodo/Japan Today/AP, 25-Aug-09). The move would reportedly reduce costs by more than JPY150 billion (USD1.6 billion). The plan is part of the company's management improvement programme to be announced by the end of Sep-2009. JAL also reportedly intends to further reduce international and domestic capacity, downsize to smaller aircraft on select routes and sell surplus B747 equipment.