MIAMI – In order to save costs, Copenhagen Airport (CPH) will lay off some 650 employees. The decision comes after revenue went down by 55.5% during the first six months of 2020.
According to CPH’s CEO, Thomas Woldbye, the dismissal plan would apply across all functions.
Cost Savings Measures for Copenhagen Airport
The airport is not only Denmark’s largest, but also serves as hub for various airlines in the Nordic region.
Due to the aftermath of the pandemic, Woldbye stated that the airport was not in position to retain all staff.
While Woldbye did not say how many employees would be dismissed, CPH said it will enter in talks with union representatives.
According to CPH, 650 redundancies would save US$52m per year. However, these cost savings will have a limited effect in 2020, reported Reuters.
The final decision on the expected cuts come after a meeting between CPH and unions taking place in the coming weeks.
The airport’s passenger flow was about 5 million in the first half of the year. The number represents a drop of 65.2% compared to the same period in 2019 when it saw 14.4 million passengers pass through its gates.
It follows then that from the negative trend, CPH now expects to incur an overall loss for 2020 of DKK 450–750m after tax.