• Joe Breitfeller

Philippine Airlines Implements Company-Wide Workforce Reductions Impacting 2,300 Employees

PAL will implement a company-wide workforce reduction that will impact around 2,300 employees of approximately 30 percent of their workforce. The total includes voluntary and involuntary measures and affected employees will remain employed through mid-March.

Philippine Airlines Airbus A350-900 - Courtesy Airbus

On Wednesday (February 3, 2021), Philippine Airlines (PAL) announced that they will implement company-wide workforce reductions impacting around 2,300 employees or approximately 30 percent of the airline’s workforce. The measure will include both voluntary separations and involuntary actions and the affected employees will remain employed through mid-March 2021. PAL previously implemented temporary furloughs and flexible working arrangement to hold off job cuts to ensure employees would continue to receive salaries and health benefits during the height of the pandemic. The company has kept in constant communication with employees and informed them of the retrenchment program as early as October 2020.

In Wednesday’s announcement, PAL’s President, Gilbert F. Santa Maria, said,

“This has been an extremely difficult and painful decision. For our colleagues who are leaving, rest assured that we are committed to support you through this transition. We extend to you our deepest gratitude for your years of hard work and dedicated service, and we will always cherish the ties you have established with the PAL family.”

Philippine Airlines implemented their retrenchment program after a comprehensive system-wide review process, as part of the company’s planned post-pandemic recovery. The airline currently operates less than 30 percent of their pre-pandemic weekly flights due to reduced demand and ongoing travel restrictions. PAL has implemented numerous cost savings measures since March 2020, including the suspension of capital expenditures, reduced management salaries, deferred lease payments and the cutting of all non-essential expenses.

Employees impacted by the retrenchment program will continue to receive salaries and benefits until their separation date along with outplacement assistance and employability initiatives to ease the transition. The company reminds their customers and partners that current operations will continue without disruptions, including regularly scheduled services, special repatriation flights and all-cargo services.

Source: Philippine Airlines