Type
Internal restructuring
Country
Norway
Region
Norge;
Location of affected unit(s)
Sector
Transportation / Storage
Land, Water And Air Transportation
Air Transport
51.10 - Passenger air transport

1,300 jobs
Number of planned job losses
Job loss
Announcement Date
28 April 2020
Employment effect (start)
28 May 2020
Foreseen end date
31 December 2020

Description

Scandinavian Airlines (SAS) plans to permanently dismiss 5,000 employees, almost half of its staff. Around 1,300 full-time permanent positions will be cut in Norway (1,900 in Sweden and 1,700 in Denmark). The airline has already temporarily laid off most of its employees due to the coronavirus countermeasures and does not assume air traffic will be back to normal levels this year, possibly not before 2022. 

The restructuring process and deliberations with trade unions will be initiated shortly, while the main employment effects will start in the fall, as most employees must be given six months notice. SAS is hoping to reduce the number of dismissals if demand proves stronger than anticipated. 

The Union representatives describe the cuts as highly dramatic and difficult for the employees. The unions will be involved in upcoming deliberations and state that they aim to responsibly contribute to constructive solutions in order to retain as many jobs as possible. They point to early pensions, severance packages and part-time work as possible measures to minimise direct dismissals. Both the local unions and national trade union confederation LO has called for increased government support and funding for the airlines.

In Norway, Scandinavian Airlines (SAS) employs around 2,813 workers, according to NRK. This implies that the company will reduce its Norwegian workforce by 46%.


Sources

Citation

Eurofound (2020), Scandinavian Airlines System, Internal restructuring in Norway, factsheet number 100486, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/100486.