2,400 SIA staff affected as group cuts 4,300 positions

In its latest and most drastic measure to deal with operations battered by the Covid-19 pandemic, the SIA Group said Thursday that it has decided to cut around 4,300 positions. However, the number of employees impacted by the exercise may be fewer - perhaps around 2,400 - as measures such as a recruitment freeze, natural attrition and voluntary departure schemes may cushion the blow. The vast majority of those affected are foreigners. The SIA Group said: "This decision was taken in the light of the long road to recovery for the global airline industry due to the debilitating impact of the Covid-19 pandemic, and the urgent need for the group's airlines to adapt to an uncertain future." Staff from SIA, SilkAir and Scoot were told of the move at virtual meetings Thursday, before the decision was made public. The SIA Group said it expects to operate at less than 50% of its capacity at the end of the financial year in March next year, as compared with the levels before the Covid-19 pandemic. It is currently operating at only 8% of its usual capacity. The group said: "Relative to most major airlines in the world, the SIA Group is in an even more vulnerable position as it does not have a domestic market that will be the first to see a recovery. In order to remain viable in this uncertain landscape, the group's airlines will operate a smaller fleet for a reduced network compared to their pre-Covid operations in the coming years." In a memo to staff, SIA chief executive Goh Choon Phong said it was a "painfully difficult decision" to retrench staff, the toughest one that he has had to make in his 30 years at the company. Goh said that the group is working with Singapore-based unions to finalise the arrangements for affected staff and to minimise stress and anxiety for them.<br/>