AirAsia Group Bhd (AAGB) will be laying off workers as part of a restructuring plan to help the discount carrier survive the Covid-19 crisis, according to internal memos sighted by FocusM.
The pandemic had forced the airline to make “fundamental changes” to the organisation and structure of its workforce, including headcount.
The immediate result would be having “to part” with a “number of our teammates from across the group”, the memo said.
AAGB had initiated a few plans to cut costs across the group since March. Measures included salary cuts of up to 100%, the suspension of certain benefits, duty travel and events, as well as no bonuses and salary raises.
But the group said that these initiatives “were not enough” as passenger volumes were down and the digital lines of business, while had “potential”, were still at an early development stage.
AAGB posted a net loss of RM303.72 mil for the financial year ended Dec 31, 2019 compared to an RM1.97 bil net profit the previous year.
The group’s shares traded 1.84% higher at 84 sen at the midday break on June 4. – June 4, 2020
