Flybe axe 300 jobs in UK
Flybe have announced that they'll be getting rid of 300 jobs (around 10% of its UK workforce) in a bid to deal with lower spending on air travel, cutting costs like many of their competitors across Europe, such as Lufthansa, Air France-KLM and British Airways.
These cuts include a reduction in management posts (20% of management jobs are now set to be axed) and around 10% of overhead and production roles.
With these cuts, Flybe expects its UK arm to break even in 2014, after a pretax loss of 2.2 million pounds in 2012, with savings reaching as high as £12 million from culling jobs.
"Persistent losses were unsustainable and needed tackling in our view... however, much will depend on the delivery of these targets and it is obviously still early days," Oriel Securities' Edward Stanford said. "Assuming management is successful we believe that there is now limited downside risk to the share price."