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JOB CUTS

Nokia to cut 600 jobs in France

Finnish telecoms giant Nokia said Thursday it planned to cut around 600 jobs in France as it seeks to make cost-savings and refocus its loss-making businesses.

Published: 7 September 2017 11:57 CEST
Nokia to cut 600 jobs in France
AFP
The group said it planned to reduce its headcount in France by 597, a little over 10 percent of its total workforce in the country, with French trade unions calling the move “unacceptable.”
 
Nokia, which no longer makes handsets having sold that business to Microsoft, bought French-American telecoms equipment maker Alcatel-Lucent in 2015 in a deal that was expected to lead to savings.
   
The cuts in France will be focused on administrative and support services and will not effect research and development as it refocuses on high-speed 5G telecom networks, cybersecurity and internet-linked appliances, the group said.
   
Nokia is aiming to make 1.2 billion euros (1.4 billion dollars) in total cost savings by the end of 2018 following net losses of 766 million euros last year.

AIR FRANCE

New Air France chief announces first job cuts

The new chief executive of Air France has proposed the first job cuts for the strike-prone airline since taking over eight months ago, with up to 465 voluntary redundancies announced on Monday.

Published: 14 May 2019 08:22 CEST
New Air France chief announces first job cuts
Photo: AFP
The cuts have been earmarked for its short-haul business in France, which lost 189 million euros ($212 million) in 2018 and is expected to make further losses in the years ahead, the company said in a statement.
 
It intends to close or reduce the number of flights on loss-making routes and make use of smaller aircraft to reduce costs, as it confronts fierce competition from low-cost rivals and France's high-speed train network. 
   
The cuts will accompany a reduction in capacity of 15 percent by 2021, the company said, with ground staff and customer services personnel set to be offered the voluntary redundancy packages.
   
“This plan will shortly be the subject of a consultation with relevant stakeholders. There will be no forced departures,” the airline said.
   
Canadian Ben Smith was named as the first non-French chief executive of Air France-KLM last year despite strong resistance from the group's powerful trade 
unions.
   
The Franco-Dutch group, formed out of a merger of Air France and KLM, has also been caught in a power struggle between Paris and the Hague. 
   
In February, the Netherlands purchased 14 percent of the airline, nearly matching the 14.3 percent held by France, sparking tensions over control and French warnings of instability in its management.
   
The move by the Netherlands was prompted by doubts over the alliance's strategy and worries that Dutch interests were being neglected. 
 
Air France said Monday that its domestic operations had lost 717 million euros in total since 2013.
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