BA slashes management ranks
November 30, 2005British Airways' new CEO has announced plans to slash management jobs as he seeks to put the national flag carrier back onto the front foot.
Keen to match former boss Rod Eddington's decision to chop 14,000 jobs in the aftermath of September 11, Willie Walsh said he will axe 597 management jobs in a bid to shave £300 million from annual employee costs.
That's an incredible 35 per cent of BA's senior management.
Mr Walsh suggested that the cuts would allow BA to begin expanding again.
"We must lower our costs so that we can fund future investment in our business," he said.
"Today marks the start of a renewed effort to deliver our goal of a 10 percent operating margin.''
The airline recently unveiled cautious expansion plans for flights to India, asserting it would boost the number of direct flights to the country from 35 to 43 by mid-2006.
The cuts will leave the airline with just 207 senior managers – down from the current 414.
© Adfero Ltd
