2600 jobs to be cut as Philippines Airlines restructures


Philippines Airlines (PAL) is all set to cut 2,600 jobs as it restructures to curb losses. Most of these jobs will go in the catering and passenger handling departments as the airline looks to outsource these processes. Management insists that redundant employees can apply for work with contractors.

PAL registered quarterly losses of US$10.6 million and Jaime Bautista, company President, told the BBC that restructuring was “a painful but necessary decision to ensure PAL’s viability and long-term survival.” While outsourcing is expected to save the airline US$15 million per year, unions are threatening action over the move.