Kenya Airways retrenches 38 employees in downsizing plan
National carrier Kenya Airways has announced redundancy plans that will see 38 employees leave the airline starting today.
This is the second phase of the airline’s restructuring program aimed at reducing its wage bill by reducing the size of its workforce.
This brings the total number of employees to be sacked to 118, after 80 employees left in July 2016.
Kenya Airways plans to slash the wage bill by Sh2 billion.
Kenya Airways Chief Executive Officer Mbuvi Ngunze said the airline remains focused on getting back to profitability with restructuring of the business model necessary to meet the target.
“Operation Pride focuses on three main priorities closing the profitability gap, refocusing the business model as well as optimizing the capital structure of the company. The strategy has started to bear fruits with the business reporting operational profit as at its half year 2016/2017 results,” Mr Ngunze said.
Mr Ngunze said employee assistance will be available for affected staff.
According the airline’s annual report, KQ has approximately 3,870 employees who account for Sh15. 7 billion in costs.
Kenya Airways had last year announced a major downsizing drive that if executed could affect as many as 600 employees.
The airline however clarified that not all employees would lose their jobs, with most being redeployed into different departments.
For the second time, the airline did not offer its staff an opportunity to take up voluntary early retirement, instead using its discretion to lay off staff.
Mr Ngunze however said the airline was operating within the confines of the country’s labour laws.
“There is never a perfect timing for such actions, and we will ensure that the process is handled within the values of our airline,” Mr Ngunze said.
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