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Finnair to cut some 140 jobs, temporarily lay off 3,000

business Updated: Jan 15, 2009 16:44 IST
Finnair to cut some 140 jobs

Finnish airline Finnair said on Thursday it would cut some 140 jobs and temporarily lay off more than 3,000 workers this year in an attempt to cut costs amid the financial crisis.

The company has also decided not to renew fixed-term contracts with some 400 employees.

Finnair said in December it would temporarily lay off some 2,000 cabin crew employees in 2009.

According to the current plan, temporary lay offs will mainly last between two and three weeks, but could be longer in its cargo units.

The firm started lay off talks last June and said then it aimed to save some 50 million euros (66 million dollars), as its profits were dented by price competition and high fuel costs.

"By these measures we will cut costs by around 20 million euros. But this will not be enough," Anssi Komulainen, Finnair's senior vice president in human resources, said in a statement.

"Due to further weakened demand and the financial situation we will continue actively to seek new significant efficiency measures."

Earlier this month, Finnair's chief executive Jukka Hienonen said the company was reviewing its route map and might be forced to cut one third of its routes if the economic situation worsened.