Kenya Airways to sack 600 employees in move to cut costs

The national carrier Kenya Airways has announced plans to sack an estimated 600 employees in a staff rationalization exercise.

The move is part of its turnaround strategy dubbed Operation Pride to reverse years of loss making.

In a statement, KQ Chief Executive Mbuvi Ngunze said the retrenchment exercise will affect various departments and all cadres of staff.

“I am confident that with the support of all staff, unions, shareholders, creditors, financiers and all other stakeholders, Operation Pride will bring back the airline’s long term profitability and reconfirm our position as the Pride of Africa,” KQ Group Chief Executive said.

Kenya Airways has a workforce of over four thousand employees.

The airline says some of the employees may be redeployed within the business should terms of service allow.

The airline announced a Ksh 11.9 billion half year after tax loss and is expected to announce its full year results in the next three months.

Kenya Airways announced its biggest ever loss in 2015 of Ksh 25 billion and has since been looking for ways to turnaround the business. In February the airline hired consulting firm Deloitte to carry out a six-year audit of its financials.

Kenya Airways has been operating on a negative equity position of Ksh 33.9 billion, further putting a strain on its operations. The airline secured a bridging loan of USD20 million from the African Export-Import Bank.

In 2012, Kenya airways laid off 599 employees as part of a similar cost cutting initiative.

In 2015, the airline reported that its staff costs had shot up to Ksh 16.96 billion.

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Sacked National carrier airline 600 KQ employees cut costs KQ Chief Executive Mbuvi Ngunze redundant

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