EMCC European Monitoring Centre on Change

SAS

Company/Organisation:
SAS

Geographic Location

Country: European Union
Location of affected unit(s): Norway, Sweden and Denmark

Company

Sector: Transportation / storage
Transportation and storage
51 - Air transport
Number Employed: 23000
Group: SAS

Employment Effects

Announcement Date: 03-02-2009
Planned Job Reductions min: 3500
Planned Job Reductions max: 3500
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-04-2009

Additional Information

On 3rd of February 2009, the Scandinavian airline company SAS, partly owned by the Norwegian, Swedish and Danish states, announced a cost-saving plan resulting in the loss of 3,500 jobs. The restructuring measures include outsourcing, production cutbacks and reorganization. This follows several major cost cuts implemented in previous years.

The job losses are attributed to a deficit of 6,3 billion SEK (5,2 billion NOK) out of a 53 billion SEK turnover in 2008. The company will reorganize the group and concentrate the activities in the Nordic market. The 3 national companies in Norway, Sweden and Denmark, as well as the subsidiaries for technical support, will be merged as of 1st of April 2009. A part of the plan is to issue 6 billion SEK of new stocks.

The unions seem to agree on the merger strategy and accept downsizing, but feat the consequences. The time schedule and exact distribution of job losses between the three countries are still to be decided, which eventually could lead to disagreements between the 39 unions from the different countries and between unions and management. More than half of cost reductions will be implemented in 2009.