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Malaysia Airlines to cut over 6,000 employees over 2 yrs

KUALA LUMPUR (XFNews-ASIA) - Malaysian Airline System Bhd (MAS) said it will cut over 6,000 employees over the next two years in its restructuring exercise to bring the carrier back to profitability.


It said in a statement that it will shed 3,089 employees between July to December this year. Of that figure, 2,622 will be accounted for by the company's mutual separation scheme (MSS) that closed on June 7.

The remaining cuts will stem from a staff reduction exercise overseas through station and route closures, expiry of short-term contracts, secondments and retirement, it said.

Another 3,000 jobs will be cut over a period of two years, it added.

MAS' managing director and chief executive officer Idris Jala said the job cuts will not comprise the safety and security of the airline's flight operations as well as service delivery.

The job cuts are expected to save the airline 250 mln rgt per year.  

MAS said that based on the number of applications approved, the MSS exercise will cost the company about 500 mln rgt.