Oman Air has cut around 1,000 jobs, that is, roughly 25 per cent of its total workforce, as part of a large-scale restructuring exercise. The move aims to restore financial stability. The job cuts impact both expatriates and Omani nationals, making it one of the most extensive workforce reductions in the airline’s history.
The decision reduces the airline’s staff strength from about 4,300 to 2,700.
Continued financial losses, with the airline reporting a net loss of about $187 million in the past year, have led to this move. Over the last decade, Oman Air has been posting average annual losses to the tune of OMR 150 million. This resulted in the government and airline leadership being pressurised to take corrective action.
Of the 1,000 roles eliminated, around 500 were held by expatriates, and nearly 400 by Omanis. In addition, 310 employees accepted a voluntary retirement offer. Some employees have been reassigned to different roles within the airline, with their base salaries remaining unaffected but benefits being reduced overall.
Despite the layoffs, Oman Air has increased its Omanisation rate, which now stands at 79.4 per cent, up from 74.8 per cent in 2023. The airline clearly remains committed to increasing the participation of Omani nationals in the workforce, even during challenging times.
The airline has allocated $39 million to support severance payments and related costs tied to the restructuring. Alongside the staff cuts, Oman Air is refocusing its strategy by modernising its fleet, improving operational efficiency, and re-evaluating its global route network.
Future plans may also involve greater collaboration with other regional airlines. By streamlining operations and strengthening partnerships, Oman Air aims to enhance its competitiveness and ensure long-term business sustainability.
