Philippine Airlines Reducing Workforce by 30%

Philippine Airlines (PAL) is reducing its personnel by about 2,300 employees, approximately 30% of its workforce.

The total includes both voluntary separations and involuntary retrenchment. The affected personnel will continue to be employed until mid-March 2021.

“This has been an extremely difficult and painful decision,” said PAL President Gilbert F. Santa Maria. “For our colleagues who are leaving, rest assured that we are committed to support you through this transition. We extend to you our deepest gratitude for your years of hard work and dedicated service, and we will always cherish the ties you have established with the PAL family.”

The retrenchment is part of the company’s overall recovery initiatives amid the ongoing COVID19 pandemic that has massively affected the global airline industry.

PAL currently operates less than 30% of its normal pre-pandemic number of weekly flights, held down by lower travel demand and travel restrictions around the world and throughout Philippines.

Since March 2020, PAL has suspended capital expenditures, reduced management salaries, deferred lease payments and slashed non-essential expenses.

The affected employees will continue to receive their salaries and medical benefits until the effective date of separation..

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