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MANILA, Oct. 5 (Xinhua) – Philippine Airlines (PAL) on Monday announced plans to cut more than 7,000 workers by up to 35 percent “as part of a larger restructuring and recovery plan” to reduce losses from the Pandemic. of COVID-19.
PAL has already said it has started asking employees to request voluntary separation, which is the first stage of the company’s workforce reduction initiative.
“The reduction is part of a broader restructuring and recovery plan as the flag carrier rebuilds its national and international network amid the global pandemic,” PAL said in a statement.
PAL said the staff reduction program will combine voluntary and involuntary measures, to be carried out within the current fourth quarter of 2020.
“At the height of the pandemic, PAL chose to implement temporary licenses and flexible work arrangements to keep jobs for as long as possible,” he said.
However, the airline said, “collapsing travel demand and persistent travel restrictions on most domestic and international routes have made cost cutting inevitable, and PAL currently operates less than 15 percent of its normal number of daily flights after eight months of blackouts. “
The PAL assured employees “that the measures will be carried out fairly, complying with all legal requirements and with support for outplacement assistance.”
In July, PAL posted a loss of $ 183.1 million for the first quarter of 2020 due to the “severe” impact of the pandemic.
PAL said it also suspended capital expenditures, which are primarily for the acquisition of new aircraft. It also launched a skeletal workforce and cut management salaries and nonessential expenses.
The Philippines imposed a blockade on the entire main island of Luzon in mid-March to curb the spread of the coronavirus. Other provinces in the central and southern Philippines also imposed a blockade.
The closure forced the airports to close, resulting in the suspension of all incoming and outgoing flights, except for domestic and international clean-up flights to repatriate foreigners out of the Philippines and to bring Filipinos from abroad. Final product
