Eurotunnel, the operator of the rail tunnel under the Channel between Britain and France, is to eliminate 900 jobs between now and next June. The workforce is being reduced by 28% to cut costs. The debt-laden company is trying to avoid bankruptcy.
Chairman and Chief Executive Jacques Gounon said there will be voluntary redundancies, spread evenly between workers in Britain and France.
He is currently in talks with creditors over a plan to reorganise its more than nine billion euros of debt. The company said it will give an update on how the talks are going by the end of this month and has warned that bankruptcy is inevitable by next month unless it can have the framework in place for a debt deal . The voluntary redundancy plan was announced after several months of negociations with workers. After the cuts, the company will have 2,300 employees.