Kenya Airways begins job cuts amid nationalization, virus losses

Kenya Airways started a three-month round of job cuts as lawmakers debate a bill to nationalize the carrier and its losses mount due to the impact of the coronavirus pandemic. The process is expected to be completed by Sept. 30, CEO Allan Kilavuka said Friday in a memo to employees, without providing the number of workers to be affected. When domestic flights resume, depressed demand for air travel will cut the number of workers needed for operations and some employees will proceed on unpaid leave from July 6, according to the memo. “We have projected that demand is going to slow down to at least 50% between now and December,” Kilavuka said last month. “Our assets need to reflect that. Our operations need to reflect that, that goes without saying.” The airline employed 3,734 people by end 2019, with a total wage bill of 13.5b shillings ($126.6m). That accounted for 11% of the airline’s total operating costs in the year, according to its annual report. Passenger flights accounted for 81% of the airline’s revenue by the end of 2019, compared to 6.8% from cargo.<br/>