P.M. BRIEFING : Iberia to Trim Its Staff by 10%
MADRID — State-owned Iberia airline said today it would begin talks with unions aimed at temporarily cutting staff by as much as 10%.
The airline said the layoffs were needed because of a drop-off in passengers since the start of the Persian Gulf War that had cost it about $1.1 million in lost revenue.
Iberia said it expected to implement the three-month layoffs in 15 days after negotiating with trade unions.
The company said it expects to lay off up to 2,500 employees, or 10% of its work force. It also said the layoffs will be extended another three months if reservations do not increase.
Iberia has already canceled a large number of international and domestic flights. It blamed those service cuts on passenger drop-offs and increases in fuel and insurance costs because of the Gulf crisis.
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