- Latvian carrier airBaltic plans to cut up to 700 jobs amid restructuring efforts
- Job cuts may affect employees in Riga, Vilnius, and Tallinn bases across roles
- The airline filed for Chapter 11 bankruptcy in the US in September to restructure
Latvian carrier airBaltic is preparing to cut up to 700 jobs as part of a broader restructuring aimed at reducing costs and addressing the airline's mounting debt, with employees across its Riga, Vilnius and Tallinn bases potentially affected.
The airline is currently discussing workforce changes with labour unions, including arrangements that could reduce workloads for pilots and cabin crew. The airline said the final scale of the workforce reduction has not been decided and could change as discussions progress, according to Reuters.
The planned job cuts come as the airline works through a Chapter 11 restructuring in the US, which it filed for in September. The bankruptcy process is focused on reshaping the carrier's operations, including reductions in capacity and fleet size, as it seeks to bring its finances under control.
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AirBaltic CEO Erno Hilden had indicated last month that the company was negotiating with unions over adjustments to its workforce. The airline has now confirmed that those discussions are continuing.
For employees outside the pilot and cabin crew categories, the company is expected to finalise new organisational structures by mid-October. Those changes will help determine the eventual scale of the workforce adjustment across the business.
The restructuring has also secured additional financial backing. A US court last month approved airBaltic's access to €140 million ($157 million) from a broader €350 million financing package. The funding is intended to support the carrier while it works through its restructuring process.
The airline's approach reflects the pressure facing its operations as it seeks to align its workforce, fleet and capacity with its revised financial position. Cutting jobs is expected to form part of that broader effort, although airBaltic has not yet provided a final figure.
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The carrier said the number of positions ultimately affected could change during the process. Discussions with unions and the development of new organisational structures will therefore determine the final scope of the workforce reduction.
With the Chapter 11 process underway, airBaltic is attempting to balance near-term financial pressures with the need to maintain operations across its Baltic bases while restructuring its business.
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