SAS to lay off 300 administrative workers

SAS Scandinavian Airlines will lay off 300 administrative staff as part of its 4Excellence program aiming to cut annual costs by 3%-5% . According to SAS, these cost-cutting measures will reduce expenses by SEK2 billion ($288 million) for 2012. SAS maintains its forecast of a marginally positive financial result for 2011. However, implementing 4Excellence has become even more crucial in 2012 due to increased economic uncertainty, increased pressure on yields in the airline industry and continued high fuel prices.

"It is critical in order to strengthen our competitive position that we reach the targeted unit cost reduction of 3%-5% annually,” president and CEO Rickard Gustafson said. “Regretfully, that will mean that good and loyal employees will be leaving SAS but I am convinced that these measures are necessary. With the loyalty and commitment that we have in SAS we will now concentrate our efforts to secure our long-term competitiveness," he said.