Struggling Japan Airlines will slash 16,500 jobs earlier than previously announced as it looks to speed up efforts to save more than 870 million dollars a year, a report said Wednesday. The new proposal, worked out by the carrier and its state-backed turnaround body, aims to shrink the group's work force of 50,000 by a third by March next year, the Nikkei business daily said without citing sources.
JAL had originally sought to shed 15,700 employees by March 2013 under a rehabilitation plan submitted with its bankruptcy filing in January. The proposed cuts include nearly 5,500 workers from cargo and other peripheral operations, around 2,500 flight attendants, more than 2,000 sales representatives and 775 pilots, the newspaper said.
Staffing at the western Kansai and central Chubu airports will be slashed by 70 percent to 642 employees, reflecting the reduced flight schedules, it said. These steps are expected to lower labour costs by an estimated 81.7 billion yen (872.24 million dollars) a year, the paper said. JAL declared bankruptcy in January with 26 billion dollars of debt in one of Japan's biggest ever corporate failures, but has continued flying while it goes through painful state-led restructuring.
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