Finnair Could Cut 200 Jobs As Russia Remains Off Limits

Finnair will begin negotiations with its employees next week amid a period of reorganization and has estimated that around 200 jobs could be cut. The Finnish carrier has implemented a new fleet and personnel strategy following the closure of Russian airspace.

Finnair to cut 200 jobs

Finnair is set to enter negotiations with employees next week regarding organizational changes which could see around 200 jobs lost. The changes are part of a wider strategy to return to profitability in less-than-optimal market conditions, particularly the closure of Russian airspace which has had a major impact on Finnair’s long-haul network.

Finnair has rolled out a new strategy to adapt to the times. Photo: Vincenzo Pace | Simple Flying.

Finnair CEO Topi Manner said,

“Russia’s invasion of Ukraine and the closed Russian airspace have impacted our business significantly. Thus, in addition to other actions to restore Finnair’s profitability, we have to discuss measures that are, unfortunately, the most painful ones for our employees.”

The Finnish airline has a global workforce of around 5,300 employees, meaning that the upcoming job cuts will trim its team by almost 4%. The airline has clarified that the majority of cuts will take place in Finland among its executive and management team, adding that “the negotiations do not concern crew or other operative employees.”

Finnair explained,

“About 120 of the redundancies would be in Finland where the negotiations concern approximately 770 employees working in executive, manager and expert roles.”

A conclusion by November

According to Finnair, negotiations will commence on October 5th and take place for at least six weeks, taking us through to mid-to-late November.

The carrier will also arrange a social support program for employees who have lost their jobs, similar to an initiative Finnair introduced back in 2020 when it axed 10% of its workforce in the wake of the pandemic. This program offers training, education and paths to reemployment and was considered a success when rolled out in 2020.

Smaller than pre-pandemic

Once Finnair’s reorganization is complete, the carrier will be a smaller entity compared to pre-pandemic times. Before the pandemic, Finnair relied heavily on lucrative routes to East Asian cities, aided by shorter flight times over Russian airspace.

The airline will be cutting back its fleet in due time. Photo: Getty Images

The airline is on course for a third successive year of financial losses and has made clear it will seek a more geographically-balanced network. Finnair will also focus on growing its partnership with fellow oneworld member Qatar Airways after launching three new routes to Doha.

The Nordic carrier has already removed all of its Stockholm long-haul routes (along with a few from Helsinki too), but will still retain several key international destinations in its network, including Singapore, Seoul, Tokyo and Los Angeles.

Do you think Finnair will successfully implement its new strategy? Do you see the airline returning to profitability? Let us know your insights in the comments.