SAS cuts 300 positions as the company tries to balance with hard time. Shares rocket with the news.Wednesday, 18 January 2012
Scandinavian airliner, SAS plans to reduce the number of full-time positions with 300 in administration. This saving is part of the company's new strategy program called "4 Excellence" and which seeks to reduce the annual unit cost by 3-5 percent.
AdvertisementThe news triggered a leap in the share of the company.
SAS also announces that the company stands by the forecast of “marginally positive” results for 2011.
SAS writes in a press release that the implementation of the initiatives in 4 Excellence becomes "even more crucial because of the increased uncertainty in 2012." The uncertainty in the business cycle, the increased price pressure and the continued high fuel prices, according to the company has meant that tightness must be pursued.
CEO Rickard Gustafson writes in a comment that reducing the unit cost is necessary to strengthen SAS's competitiveness.
"While I regret that it will mean that talented and loyal employees will be leaving SAS, I am convinced that the measures are necessary, "writes Gustafson.
The news of the saving and the marginal benefit saw SAS’s share shot up on the Stockholm Stock Exchange. At 12.45 it had risen by 4.4 percent to Skr9.40.
By Scancomark.se Team
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