AirBaltic plans to cut up to 700 jobs amid bankruptcy restructuring
by@Reuters
Summary
AirBaltic announced plans to cut up to 700 jobs as part of its ongoing restructuring efforts following its Chapter 11 bankruptcy filing in September aimed at reducing significant debt. The company is currently assessing new organizational structures, with final decisions on layoffs expected by mid-October. However, Dace Kavasa, chairperson of the Latvian aviation union, criticized the company’s approach, stating there was "pure union busting," as staff were informed of potential job cuts just minutes before a meeting. Formal discussions between the union and management are set to begin on October 15.
Analysis
AirBaltic: AirBaltic is Latvia's national flag carrier airline headquartered in Riga. The company recently filed for Chapter 11 bankruptcy protection in New York as part of efforts to restructure its operations and address financial challenges through capacity and fleet adjustments. Union representatives have voiced strong objections to the proposed workforce reductions and consultation process. Dace Kavasa: Dace Kavasa is the chairperson of the Latvian aviation union representing airline workers. She has publicly described the company's job cut announcements as union busting and criticized the lack of advance notice to employees and their representatives. Labor Relations: Union leadership has condemned the timing and approach of the workforce reduction announcements and is preparing for formal discussions with management. Restructuring Efforts: The airline is pursuing Chapter 11 bankruptcy to reorganize and reduce its debt burden through operational changes including fleet adjustments.
Categories
macropolitics