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International Airlines Group said on Tuesday it intends to cut more than 3,800 jobs at Iberia airline, about 700 fewer than it had planned in November.
IAG, which also owns British Airways, said in a statement that Iberia informed Tuesday its employees, trade unions and the Spanish Employment Ministry that it has started the formal process of collective redundancy
"3,807 jobs in the airline are affected," it said.
IAG had initially announced in November that it would cut 4,500 jobs at the airline and impose salary cuts of between 25 and 35 percent as it sought to stem losses.
Iberia had sought to reduce the job cuts to 3,147 jobs -- or 16 percent of the workforce -- alongside salary reductions of between 11 and 23 percent, but the discussions failed.
Iberia staff plan to strike for 15 days in February and March to protest the plans to shed workers, according to union officials.
IAG said it was still open to talks with unions during the formal 30 day consultation process.
Iberia executives said the airline accumulated 850 million euros in losses between 2008 and September 2012, forcing the need for drastic action.
The airline aims to cut its capacity by 15 percent this year, in particular cutting several loss-making routes to Latin American destinations.