Air New Zealand plans to shed 2,000 more jobs to deal with low demand
Air New Zealand had earlier announced employee lay-offs and lower pay for those who would stay on job. However, the management has now shocked employees with the news of 2,000 more layoffs. Air New Zealand has already made 4000 workers redundant and its plan to cut 2,000 additional jobs has been met with protest from employees.
Air New Zealand was having nearly 12,500 total staff before COVID-19 pandemic. Due to lockdowns and very low demand for travel in the upcoming months, Air NZ management plans to cut more jobs. Many airlines are staring at long period of low revenue as tourist business would suffer due to coronavirus led economic stress. As many sectors will face the economic impact of coronavirus pandemic, discretionary spending and spending on leisure activities will suffer.
In his letter to staff, Air NZ chief executive Greg Foran laid out a plan and timeline to get Air New Zealand back on its feet, which included removing around $150 million more from its wage bill starting on Friday.
Air New Zealand is also proposing lower pay, reduced working hours, voluntary exits and job sharing. The airline recently announced its future operating plans and domestic flights will start first. The international travel load factor is expected to remain low and we might see many airlines code-sharing for saving costs.
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