SAS slashes 5,000 jobs in deepest cut at a European Airline

SAS is eliminating as many as 5,000 jobs, marking the first permanent staff cuts by a major European carrier in the face of collapsing travel demand. The Stockholm-based company said Tuesday that the dismissals, amounting to 40% of the workforce, are necessary because employees have an average notice period of six months and it needs to prepare for what may be years of sluggish demand. The job cuts provide a taste of things to come at European airlines, which have suffered one of the biggest hits from the coronavirus pandemic, with 90% of capacity grounded. Government furlough programs have generally avoided firings in the short-term, with thousands of workers laid off temporarily. “It’s a painful message to give,” SAS CEO Rickard Gustafson said. “We are prepared to shift if demand returns more quickly and pull back some of the announced cuts.” SAS, which had already laid off 90% of employees, will split the permanent job cuts across its three home nations, with about 1,900 posts going in Sweden, 1,700 in Denmark and 1,300 in Norway. Labor law in Nordic countries means notice periods are often longer than elsewhere in Europe. British firms legally have to give no more than 12 weeks’ notice, around half the period SAS said applies to its employees on average. <br/>