Speed check - close. Actually, according to this article from today's Sunday Times it's another 8,000 over three years, with another 2,000 next year:
BA plans to axe 8,000 more jobs
David Parsley
BRITISH AIRWAYS is planning up to 8,000 job cuts over the next three years on top of the 1,800 announced last Tuesday. Rod Eddington, the airline's chief executive, is understood to be considering 10% to 15% cuts in the group's 58,000 staff in an effort to slash costs.
While BA would not comment on the move, one senior source said: "We will be making further job cuts after the 1,800 are complete at the end of our financial year on March 31, 2002. We have told the unions that further job cuts will be substantial. Substantial means at least 2,000 next year."
The cuts are expected to continue after 2002 as BA seeks to implement its strategy of concentrating on first and business-class passengers while cutting economy seats.
The decision to cut 1,800 jobs last week was understood to have been made in the past two weeks. One BA source said: "I was away for two weeks and there was no such plan. Then the slowdown in the world airline market became even more clear and the decision was taken to tell union people that we were cutting the jobs."
George Stinnes, BA's head of investor relations, also made it clear more job cuts were on the way. He said: "We are cutting 25% of our capacity and so far we've only cut 3% of the staff. I'm not saying the job cuts will be 25% to match the capacity reduction but 3% doesn't seem much, does it?"
Analysts such as Chris Tarry at Commerzbank and Chris Avery at JP Morgan agree further cuts are likely.
Tarry said: "It is clear that the market has turned down more quickly that anyone could have reasonably predicted at the beginning of the year. But the regrouping strategy is exactly the correct path to follow."
Avery said: "BA recovered first after the last downturn and will this time as well. Its strategy is right and that may mean job cuts. But it is the right strategy for the long term."