Japan Airlines mulls cutting 5,000 jobs

Cash-strapped Japan Airlines (JAL) is considering cutting about 5,000 employees, or 10 per cent of its group workforce, by March 2012, Kyodo News reported today.

Kyodo, quoting industry sources, said the cuts may be implemented through attrition and steps such as encouraging early retirement.

The report could not be immediately confirmed with Asia's biggest carrier.

On August 7, JAL announced drastic cuts to its flight services as it braces for a second straight year in the red amid a slump in demand, particularly from business travellers, caused by the global downturn.

JAL, which has announced more than 11,000 job cuts since 2005, forecast a loss of 63 billion yen ($660 million) in the year to March 2010, after a 63.2-billion-yen deficit last year.