Japan Airlines, which is currently struggling to come with the recession and its after-effect, is considering to cut 5,000 jobs in three years, as the airline is poised to undergo a massive restructuring exercise.
The 5,000 job cuts will mean a 10% reduction from its total workforce. Presently, the number of workers in the airline stands at 48,930 as reported in its website.
It wasn’t clear what exactly will happen in the restructuring program, but the drastic move has been on the card since the management found that the company was losing money fast and was seemingly unable to go back to the black within the targeted period of time. It’s highly likely for the number of flights to be grounded, striking fears that many of the pilots and cabin crew would have to be let go.
The airline recorded its largest ever quarterly net losses of 99 billion yen ($1 billion) between April to June 2009, thanks to the plunging demand and the swine flu (influenza AH1N1) fear factor.
Japan Airlines, which is also known as JAL, is the biggest airline group in Asia at the moment.