Singapore Air to cut a fifth of workforce amid pandemic chaos
Singapore Air today said it will cut roughly a fifth of its workforce due to the catastrophic impact of the coronavirus outbreak on aviation demand.
The airline will slash 4,300 positions — the largest job losses in its history — with the cuts impacting its main brand as well as its Silkair and Scoot divisions.
The company said that taking into account a recruitment freeze, natural attrition and voluntary departure schemes, the potential number of staff affected would be reduced to 2,400.
Singapore Air reiterated its forecasts that it expected to operate at less than 50 per cent of its normal capacity by the end of the financial year in March. It is currently running at just eight per cent.
While the entire aviation industry has been badly hit by the pandemic, Singapore Air is particularly vulnerable due to its lack of domestic service and reliance on badly-affected international routes.
The airline said it would operate a smaller fleet and reduced network in the coming years in a bid to stay afloat.
Today’s announcement marks the first job losses at the company since the start of the pandemic, during which it has raised $11bn (£8.6bn) of equity and debt to shore up its balance sheet.
“The next few weeks will be some of the toughest in the history of the SIA Group as some of our friends and colleagues leave the company,” said chief executive Goh Choon Phong.
“This is not a reflection of the strengths and capabilities of those who will be affected, but the result of an unprecedented global crisis that has engulfed the airline industry.”