Published on Tuesday, October 6, 2020

Philippine Airlines cutting 35 per cent of workforce

Philippine Airlines confirmed it plans to downsize its workforce by more than one-third, with 2,700 positions cut.

They will be a combination of voluntary and forced job cuts, PAL said.

"PAL assured employees that the measures will be carried out in a fair manner that complies with all legal requirements and with support for outplacement assistance," the carrier said in its statement.

The downsizing will be across most departments including ground staff and cabin crew.

"At the height of the pandemic, PAL chose to implement temporary furloughs and flexible working arrangements to maintain jobs as long as possible."

"However, the collapse in travel demand and persistent travel restrictions on most global and domestic routes have made retrenchment inevitable, with PAL currently operating less than 15% of its normal number of daily flights," it added.

PAL said it has deferred capital expenditure, such as the purchase of new aircraft and cut management salaries.

It has received an additional capital infusion from existing shareholders to stay afloat and plans to continue restructuring to further reduce costs.

According to local media, the job reductions will be carried out by the end of the year.

The airline has more than 7,800 employees.

Written by Ray Montgomery, Asia Editor