The downsizing came by way of retrenchment and voluntary separation
Philippine Airlines has cut 300 administrative and ground crew members from its workforce in a bid to restructure the business.
The downsizing came by way of retrenchment and voluntary separation, with affected workers receiving career counselling and outplacement support as well as separation benefits and additional travel perks.
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The staff cuts, effective 28 February, were made in response to weakening demand for international travel. This was compounded by concerns over the deadly coronavirus outbreak, the company said.
“The streamlining will strengthen the company in the wake of losses sustained in 2019, aggravated by the ongoing travel restrictions and flight suspensions to areas affected by COVID-19,” PAL said.
Other airlines in the region have opted to trim losses by asking staff to go on voluntary leave.
READ MORE: Cathay Pacific asks staff to take unpaid leave amid virus outbreak
Singapore Airlines’ senior leaders, along with CEO Goh Choon Phong, have agreed to take a pay cut ranging from 10% to 15%. The carrier has also offered voluntary unpaid leave to staff, including flight crew members.
“Those who opt for this can be assured that the jobs will be there upon their return,” the CEO said in a letter to employees.
Cathay Pacific earlier announced more than 25,000 workers have taken three weeks of unpaid leave to allow the airline to preserve its cash. Emirates, which operate the largest airline in terms of international traffic, also made a similar offer.
