Japan Airlines Corp. has decided to slash its group workforce by 13,000 by the end of March 2015, 4,000 more than its initial plan, Kyodo News reported, citing sources with knowledge of the company’s plan.
JAL, as the airline is known, plans to reduce the workforce of the company and its consolidated subsidiaries to about 35,000, and cut the number of subsidiaries to around 50 from 120 as of the end of March this year, the report said.
Most of the planned 13,000 job cuts will take place at Japan Airlines International Co., the unit that operates JAL flights, Kyodo said. The additional 4,000 job cuts will involve the sale of part of an equity stake in JAL Hotels Co., and consolidation of overseas subsidiaries of JALPAK Co., a travel agency, Kyodo said.
JAL has asked banks to write off or convert 250 billion yen ($2.7 billion) of loans into equity as part of a plan to reduce liabilities and return to profitability. The carrier is set to release its turnaround plan by the end of the month.