Kenya Airways says it has taken some hard decisions in an effort to make substantial changes on other aspects of its business. The Airline says the restructuring process will result in approximately 600 (six hundred) members of staff being declared redundant or redeployed elsewhere, should their terms of service allow it.
In the process, the Airline expects to save Ksh 2 billion from the staff reduction exercise which accounts for 10% of its target of Ksh 20 billion.
The 600 staff represent 15% of its total workforce of 3,973 employees.This follows another staff reduction exercise that was done in 2012 which affected 599 workers.
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Kenya Airways also says that it has successfully implemented some of the initiatives such as the sale and sublease of aircraft, the reduction of waste in catering, and renegotiation of some contracts.
In order to return to profitability, the Board said it reviewed various options and had to come to the painful decision that part of the required overhead savings will be derived from a decrease in staff headcount. The exercise, which will affect various departments and all cadres of staff – details of positions and specific staff to be affected by this exercise are currently being worked on and will be released to those concerned in due course.
“These measures are among the many that we are undertaking and accounts for 10% of the overall turnaround plan. The redundancy process will be in full compliance with labour laws, Collective Bargaining Agreements (CBAs) and individual staff members’ contracts as appropriate. We intend to commence the rationalisation by the beginning of May 2016, which will cover unionisable and non-unionised members of staff.” Read a statement from KQ.
“The decision communicated above is not made lightly, and I want to thank all employees for their tremendous resilience and commitment in serving our guests in challenging times for the company. I am confident that with the support of all staff, unions, shareholders, creditors, financiers and all other stakeholders, Operation Pride will bring back the airline’s long term profitability and reconfirm our position as the Pride of Africa,” said Group Managing Director & CEO Mbuvi Ngunze
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