British Airways is to grant voluntary redundancy for 1,000 employees and reduced hours for a further 3,000 more workers, and has confirmed it will recruit new cabin crew on lower wages, as part of continued cost-cutting.
The changes, due to come into force in November, will represent a reduction of 1,700 full-time workers and will see new cabin staff receiving a pay packet which is more in line with those offered by BA's low-budget competitors.
The decision was taken to recruit crew on different terms and conditions to minimise the impact of cost-cutting measures on the airline's existing staff members. BA confirmed the measures will not alter the contractual terms and conditions for existing individual crew members, and will not reduce the number of working crew on board a flight.
A statement from the firm read: "British Airways is currently not profitable and we expect to record a significant loss for the second consecutive year - the first time that that has happened in our history. Revenues are down so we must reduce costs to restore profitability.
"Without these, we will lose more money with every month that passes. It is essential we make ourselves more efficient if we are to ensure our long-term survival."
Meanwhile, BA will continue negotiating a two-year pay freeze with unions, after already successfully agreeing a 2.6% pay cut for pilots, as well as a reduced salary for engineers.