SHARE
COPY LINK
MARX

BUSINESS

easyJet expects to grow passengers in Germany by 10 million this year

In Berlin alone, the budget airline expects to have 60 percent more passengers, or 5.6 million, in 2018 thanks to the bankruptcy of a former competitor last year.

easyJet expects to grow passengers in Germany by 10 million this year
easyJet-Airbus A320-214 at Berlin Tegel. Photo: DPA

Through adding more domestic flights, the British carrier also aims to grow from 8 million in 2017 to 18 million passengers this year in Germany, Handelsblatt reported on Tuesday, quoting the company's European head Thomas Haagensen. The spike in numbers could pose serious competition to Lufthansa, currently Germany’s largest airline. 

Lufthansa purchased €40 million of Air Berlin, which was formerly the second largest airline in Germany before declaring bankruptcy in August 2017. EasyJet purchased the remaining parts for an undisclosed amount.

While easyJet has been situated at Berlin’s Schönefeld Airport since 2004, it moved to Tegel to take over parts of Air Berlin facilities. It plans to have up to 25 planes based out of Tegel – serving 40 destinations by the end of summer – in addition to the 12 it already has situated at Schönefeld.

EasyJet’s base at Tegel, however, is up in the air after Berlin’s state senate said on Tuesday that it would ignore a referendum in which Berliners voted to keep Tegel open when the much-delayed BER airport finally opens its doors in 2020. 

By this summer, Berlin will also be a base of the airline's “WorldWide by easyJet” system, which currently runs out of London-Gatwick, but also plans to expand to Paris’ Charles de Gaulle and Orly, Amsterdam and Venice. The long-haul service will expand its network of discount flights to Asia and the Middle East.

BUSINESS

German software giant SAP to cut 3,000 jobs

German software giant SAP on Thursday said it planned to cut some 3,000 jobs this year, joining a wave of layoffs in the global tech sector.

German software giant SAP to cut 3,000 jobs

The Walldorf-based group, which offers both traditional software and cloud-based computing services, said it planned to carry out a “targeted restructuring programme” to “strengthen its core business” and improve efficiency.

“The programme is expected to affect approximately 2.5 percent of SAP’s employees,” it said in an earnings report unveiling full-year results for 2022.

SAP has a workforce of around 120,000 employees worldwide, meaning it plans to shed some 3,000 jobs.

There are around 16,000 employees working at its German headquarters in Walldorf, Baden-Württemberg, and it also has offices and research facilities in Berlin under the ‘SAP Labs’ brand. 

It is so far unclear how many of its German workforce will be affected by the layoffs. 

READ ALSO: Working in Germany: Which sectors currently have the most job openings?

The move follows similar cuts announced by tech giants Meta, Amazon, Google, IBM and Microsoft as the once-unassailable sector girds for an economic downturn.

SAP said its jobs cull would cost the company between €250 and €300 million ($270-330 million), mainly in the first quarter of 2023.

The restructuring is expected to lead to annual savings of 300-350 million euros from 2024, “which will help to fuel investments into strategic growth areas”, SAP said.

SAP also said it would explore a sale of its Qualtrics subsidiary, which specialises in online market research software.

A sale would further allow SAP to focus more on its core cloud business, it said.

For the whole of 2022, SAP announced revenues of 30.9 billion euros, up 11 percent on a year earlier.

Operating profits came in at just over 8 billion euros, down two percent compared with 2021.

For 2023, SAP expects operating profits to increase by 10 to 13 percent.

SHOW COMMENTS