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Northwest Airlines to cut 2,500 jobs

(Xinhua)
Updated: 2008-07-10 11:14

WASHINGTON -- Northwest Airlines Corp. said on Wednesday it cut 2,500 jobs as a result of capacity reductions taken to address the unprecedented run-up in oil prices.

"Our fuel costs have more than doubled in the past year," said Doug Steenland, president and CEO of Northwest Airlines in a written statement.

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"In order to manage through this unprecedented fuel challenge, we have to take action to both control costs and increase our revenue," he added.

Altogether, the new and increased fees are expected to generate US$250 million to US$300 million a year for the airline.

The job reductions will affect both management and front-line workers, including all employee groups, the airline said.

Northwest hopes to achieve the job cuts through early-out programs, voluntary leaves and other measures. But furloughs could occur if not enough workers take these voluntary offers, the airline added.