The Singapore Airlines (SIA) Group announced on Thursday, September 10, that it will be cutting around 4,300 positions across its airlines.
After taking into account a recruitment freeze, natural attrition, and the take up of voluntary departure schemes, the potential number of staff impacted will be reduced to about 2,400 in Singapore and in overseas stations.
"Having to let go of our valuable and dedicated people is the hardest and most agonising decision that I have had to make in my 30 years in SIA," said Goh Phoon Chong, Chief Executive Officer, SIA.
In a press statement, SIA said the decision was taken in light of the long road to recovery for the global airline industry due to the debilitating impact of the COVID-19 pandemic. There is also an urgent need for the Group's airlines to adapt to an uncertain future.
As previously indicated, the Group expects to operate under 50 per cent of its capacity at
the end of financial year 2020/21 versus pre-COVID levels. Industry groups have also forecast that passenger traffic will not return to previous levels until around 2024.
"Relative to most major airlines in the world, the SIA Group is in an even more
vulnerable position as it does not have a domestic market that will be the first to
see a recovery."
SIA Group will have to operate a smaller fleet for a reduced network compared to their pre-COVID-19 operations in the coming years.