Garuda Indonesia recently announced that at least 700 employees would lose their jobs as the travel industry continues to struggle due to the COVID-19 pandemic.
Photo credit 馬鱈作定 | バタラサクティon flickr
According to Garuda President Director Irfan Setiaputra the workers being laid off have all been taking unpaid leave since May.
In a statement Setiaputra said “We are forced to take the difficult decision in order to ensure our company’s survival during these challenging times.”
The airline industry has experienced an unprecedented downturn with international tourist arrivals down 98% in Southeast Asia.
Garuda Indonesia saw passenger numbers fall by 70% in the first 8 months of 2020. Garuda have reported a loss of US$712 million (approx £549 million) for the first 6 months of the year.
These are not the first job losses from Garuda. In June announced the termination of employment of 135 contract pilots.
Garuda are understood to be in negotiations with the Indonesian government over a US$580 million (approx £447 million) rescue package.
Elsewhere in the region Cathay Pacific recently announced 8,000 job losses, Malaysia Airlines are reported to be in financial difficulty and Malindo Air from Malaysia are cutting around 2,200 of their 3,200 workforce.
Advertising and affiliate links help to support this site. We never tailor content to encourage sales with a particular company. We only partner with organisations who we believe provide a good service or product. Thank you.