Singapore Airlines plans to cut 4,300 jobs due to impact of coronavirus pandemic

The airline has no domestic network and is wholly dependent on international demand at a time when many borders remain effectively closed

It said to remain viable in an uncertain landscape it would operate a smaller fleet and reduced network in coming years

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Singapore Airlines raised S$11 billion of equity and debt to shore up its liquidity. Photo: Reuters

Published: 8:33pm, 10 Sep 2020Updated: 8:33pm, 10 Sep 2020

Singapore Airlines on Thursday said it would cut 4,300 positions, or about 20 per cent of its staff, due to the debilitating impact of the coronavirus pandemic on demand in the largest job losses in its history.

The airline said after taking into account a recruitment freeze, natural attrition and voluntary departure schemes, the potential number of staff affected would be reduced to around 2,400 in Singapore and overseas.

The company reiterated its forecast that it expected to operate less than 50 per cent of its normal capacity by its financial year end of March 31, 2021. It is currently at 8 per cent.

The airline has no domestic network and is wholly dependent on international demand at a time when many borders remain effectively closed.

It said to remain viable in an uncertain landscape it would operate a smaller fleet and reduced network in coming years, having already announced a review of its Airbus SE A380 planes for a possible S$1 billion (US$731.21 million) in impairments.

The job losses on Thursday were the first it had announced since the start of the pandemic, which has seen it raise S$11 billion of equity and debt to shore up its liquidity.

“The next few weeks will be some of the toughest in the history of the SIA Group as some of our friends and colleagues leave the company,” Singapore Airlines chief executive Goh Choon Phong said in a statement.