IAG CEO Walsh to Cut 4,500 Iberia Jobs as Spain Hurts Profit

British Airways parent International Consolidated Airlines Group SA said it will eliminate 4,500 jobs at Spanish unit Iberia -- or more than one-fifth of the total -- after third-quarter profit tumbled 25 percent.

Iberia’s fleet will also be cut by 25 aircraft to reduce capacity by 15 percent next year, short-haul salaries will be reduced to levels at low-cost carriers, and unprofitable routes will be suspended, London-based IAG said in a statement.