EL Al to lay off 200 employees under cost-cutting drive: reports

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Israeli flag carrier El Al plans to lay off around 200 employees, on temporary or individually negotiated contracts, as part of a cost-cutting initiative, according to local media reports.

The Haaretz report says the lay-offs are only the first step in a cost-cutting programme. It claims the airline will introduce measures to reduce management overheads as well holding talks with Israel's trade union federation, the Histadrut, and the El Al workers committee to renegotiate collective labour agreements.

At the end of January El Al revealed it was negotiating with Tel Aviv-based investment firm FIMI over a potential injection of up to $60 million. It says the cash-for-equity deal is conditional upon employees signing a new collective agreement.

El Al was not immediately available to comment.