Despite the updated target, further reductions are still sought in all cost categories. As previously stated, they include savings in such areas as real estate, aircraft leasing, IT, sales and distribution and administration costs, as well as compensation structures. The company will further continue streamlining its organisation and operations and the digitalisation and automation of its customer processes. Additionally, it will remain focused on renegotiating its supplier and partner agreements.
In conjunction with the cost savings programme, the company completed the co-determination negotiations in the latter half of 2020 and the resulting global reduction in jobs was c. 600. When retirements and other attrition are included, Finnair’s personnel declined by almost 1,100 compared to the beginning of 2020. Further, as a part of the cost savings programme, the company has concluded agreements with some of its employee groups targeting permanent cost savings. The employee groups committed to the permanent savings target are eligible to participate in an incentive plan, which rewards employees for successful rebuild efforts. Also, the indefinite as well as temporary layoffs resulting in temporary cost savings will be continued.
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