EasyJet has confirmed its plans to cut head office roles ahead of its £5.7 billion private equity takeover. The airline is consulting on proposals that could cut up to 50 head office roles from its 2,300-strong team.
Apollo takes over easyJet
In July, easyJet agreed to a takeover by Apollo Global Management, a U.S. asset management firm, at £7.15 per share.
EasyJet’s shareholders are voting on the proposal on Wednesday, and, if approved, it is expected to be completed by the first quarter of 2027.
An easyJet spokesperson said:
“These proposals affect a very small proportion of head office roles to ensure we are best set up to support the business’ ambitious plans”
EasyJet said the cut-offs are not related to Apollo or the takeover, saying:
“Our people are integral to easyJet’s success and as a low-cost airline we always operate efficiently so we can keep fares low for our customers and invest in future growth opportunities. These proposals affect a very small proportion of head office roles to ensure we are best set up to support the business’ ambitious plans.”
Although Apollo has vowed not to cut any jobs for a year after the takeover, the British Airline Pilots Association (BALPA) trade union has voiced concerns, saying that “important questions remain regarding the long-term implications of the transaction.”The association added:
“Balpa’s principal concern is the extent to which the transaction may affect employees beyond the 12-month period covered by the statements of intention.”
More about easyJet
The takeover was agreed after U.S. investment firm Castlelake, which was originally in the bidding race, withdrew.EasyJet was founded in 1995 by Sir Stelios Haji-Ioannou, offering cheap air fares across Europe from the UK.
Since its founding, the airline has become one of Europe’s largest airlines, employing over 19,000 people and operating around 1,200 routes across 35 European countries.
Sir Stelios and his family still own around 15% of the business and have said he supports Apollo’s plans to drive further growth.
In a statement, he said:
“My family and I intend to remain invested as long-term major shareholders of EasyJet for the next chapter in the company’s journey.”
Apollo said it’s “highly supportive” of the airline’s existing strategy and there is “a significant opportunity to accelerate the operational and commercial ambitions” for the easyJet Group.
What are your thoughts on Apollo’s takeover of easyJet and easyJet cutting head office jobs? Let us know in the comments.
