Following a surprise quarterly loss, Singapore Airlines (SIA) said that jobs are likely to be cut as the airlines undergoes business review.
Talking to reporters on the side-lines of annual meeting of International Air Transport Association in Cancun, Goh Choon Phong, Chief Executive Officer of SIA said, “The carrier's staff is aware headcount reduction is possible under the process.”
He added, “Some jobs may become irrelevant, while some workers may need new skills for different tasks. It is too early to provide numbers.”
He directed a similar warning on the jobs front in May when unveiling a major business transformation plan.
He said, “The review process that covers the carrier's fleet and network started more than six months ago, and SIA has hired external advisers for help.”
It is pertinent to mention that Singapore Airlines is under pressure to reduce costs and revamp its business amid intense competition from regional discount carriers and Middle-Eastern rivals.
Meanwhile, Cathay Pacific Airways also announced last month that it would eliminate 600 jobs in Hong Kong. This was part of the biggest business revamp in two decades as it slipped into a loss for the first time in eight years.
Cathay Pacific has set a target to save 30 per cent in employee costs at its head office.