Philippine Airlines (PAL) will reduce its workforce by 2,300 by mid-March as it continues to reel from the effects of the coronavirus disease 2019 (Covid-19) pandemic.
The global airline industry was one of those hardest hit by the pandemic.
PAL said fewer flights and prevailing travel restrictions due to the pandemic has forced it to reduce by 30 percent its current workforce. The job reductions will be carried out by both voluntary separation and retrenchment.
“This has been an extremely difficult and painful decision. For our colleagues who are leaving, rest assured that we are committed to support you through this transition,” PAL president Gilbert Santa Maria said in a statement on Tuesday.
“We extend to you our deepest gratitude for your years of hard work and dedicated service, and we will always cherish the ties you have established with the PAL family,” he added.
Owned by Lucio Tan with Japan’s ANA Holdings as minority shareholder, PAL is Asia’s oldest airline and the local carrier with the largest international network.
PAL Holdings Inc., the operator of PAL, said it recorded losses reaching P29.03 billion in the first nine months of 2020, a 370-percent increase from the P7.86 billion losses recorded a year earlier.
PAL is also struggling with its debts.
Based on data from wsj.com, PAL Holdings had short-term debts amounting to P18.53 billion while the current portion of its long-term debt stood at P29.71 billion at the end of 2019. SOVEREIGNPH