This archive report was first published on 4 July 2020.
Kenya Airways Faces Staff Cuts Amid COVID-19 Pandemic ¶
Published on July 4, 2020
Kenya Airways, the country's national carrier, is set to sack hundreds of employees in a national resizing exercise following the outbreak of the COVID-19 pandemic.
The airline had projected it would lose up to KSh 50 billion in 2020 due to the effects of the pandemic, which has significantly impacted the airline's operations and revenue.
According to a memo to staff, CEO Allan Kilavuka said the company's staff, network, and assets would be affected in a staff rationalisation process expected to be concluded by September 30, 2020.
"A decision has been reached to carry out an organisation-wide rightsizing exercise which will result in a reduction of our network, our assets, and our staff. Effectively, we have commenced a phased staff rationalisation process, which we expect to conclude by September 30, 2020," Kilavuka stated.
The airline had previously recorded a KSh 12.98 billion net loss in 2019 due to increased operating costs, and was also developing a strategy to diversify its business from passengers to cargo.
Kenya Airways is set to become a fully government entity following the nationalisation exercise, with its shares suspended from trading at the Nairobi Securities Exchange (NSE) on July 3, 2020.
