British Airways has released a statement in the wake of this pandemic situation, announcing the termination of nearly 12,000 employees. The layoff is part of the British carrier’s proposed restructuring policy.
With flights being suspended and airports remaining more or less closed, the aviation industry has been the most badly hit by the outbreak of the coronavirus. Many airlines have had to lay off their employees or cut their salaries just to stay in business.
According to a statement by British Airways’ parent company, International Consolidated Airlines Group (AIG), “The proposals remain subject to consultation but it is likely that they will affect most of British Airways’ employees and may result in the redundancy of up to 12,000 of them.”
British Airways reportedly has approx. 4,500 pilots and 16,000 cabin crew. Taking advantage of the UK’s Covid-19 job-retention scheme, the Company had already furloughed 22,626 employees this month.
It has been conveyed by AIG, that since the beginning of 2020, it has been incurring losses. In the first three months, it lost about €535 million ($579 million), as compared to a profit of €135 million in the same quarter last year.
Other global airlines, such as Qantas, Air Canada, Norwegian Air, and American Airlines have also had to downsize and take drastic cost-cutting measures to stay afloat.