Global Economic Gloom: Major Companies Announce Job Cuts across Europe
By Kumaran Ira
Global Research
January 19, 2016
Amid growing global economic gloom, including a slowdown in China and falling oil and commodity prices, major companies throughout Europe are announcing mass layoffs and job cuts.
Last Wednesday, US multinational General Electric (GE) announced plans to cut 6,500 jobs in Europe over the next two years, including 1,700 jobs in Germany, 570 in the UK, 765 in France and 1,300 in Switzerland. According to comments from the head of GE’s power division last September, this is part of a plan to squeeze out $3 billion in cost savings over five years.
GE acquired French engineering company Alstom in a €9.7 billion deal in 2014, promising to create jobs. GE France spokesman Laurent Wormser said job cuts in France will hit mainly administrative jobs in the Paris area, in human resources, public relations and the legal department.
After reaching an agreement with the trade unions, French nuclear group Areva announced plans for 6,000 job cuts worldwide, including in Germany, the United States and 2,700 in France. The “competitiveness plan” deal would net Areva €1 billion in savings by 2017.
British Airways is eliminating 5,800 jobs under a plan to cut its debts, on top of 7,600 job cuts already announced earlier. These will largely hit major British airports, including 6,600 jobs cut at Heathrow airport and 3,000 at Gatwick.
France’s largely state-owned electricity firm EDF is cutting 4,000 jobs, or 6 percent of its workforce, through attrition over the next three years―twice the number announced previously. On a €72.8 billion turnover in 2014, EDF amassed a €3.7 net profit. This comes after last month’s announcement of more job cuts in the French state sector, with French state-owned rail operator SNCF announcement of 1,400 job cuts in France as part of a plan to shed 10,000 jobs by 2020.
Air France plans to cuts 2,900 jobs between 2016 and 2017, including 1,000 jobs this year, despite making a significant operating profit over the last year. “Air France’s recovery is continuing and the current buoyant economic situation allows us to offer a return to growth as from 2017,” Air France CEO Frederic Gagey boasted.
Tata Steel will cut 1,050 jobs in Britain, hitting plants in Port Talbot, Llanwern, Trostre, Hartlepool and Corby, after announcing hundreds of job cuts last year as steel prices plunged. Ceramics group Royal Doulton will cut up to 1,000 jobs, mostly in Britain, amid the closure of its Baddeley Green factory.
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