SAA may fire a fifth of its workforce as part of restructuring

South African Airways, the embattled state-owned airline that’s reliant on government financial support to continue operating, has started a restructuring process that could see cuts to the size of its workforce by almost a fifth.

“We urgently need to address the ongoing loss-making position that has subsisted over the past years,” acting Chief Executive Officer Zuks Ramasia said in an emailed statement on Monday. “That is why we are undergoing a restructuring process that seeks to ensure effective implementation of the accelerated long-term turnaround strategy amidst the present prevailing operational challenges.”

As required by South African law, the carrier has started talks with labour unions about its plans, which could affect 944 of its 5149 employees. The proposed restructuring includes all SAA divisions and departments, excluding its Mango Airlines, Air Chefs and SAA Technical units, the carrier said.

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Source: moneyweb.co.za