[Asia Economy Reporter Seulgina Jo] Eastar Jet is reportedly considering a plan to lay off half of its employees. This is the first time a major airline has conducted large-scale layoffs due to the COVID-19 pandemic.
According to the aviation industry on the 1st, Eastar Jet recently held a meeting with employee representatives to communicate this direction and then sent the related information to all employees via email.
The company estimated that the current necessary workforce is about 930 employees based on aircraft operations and other factors. Considering that Eastar Jet currently has approximately 1,680 employees, this means about 750 employees, or 45%, will be laid off.
Eastar Jet reportedly decided to first accept voluntary retirement applications in two phases, and if the number of applicants does not meet the layoff target, the company will proceed with layoffs to make up the difference. The final scale and timing of the restructuring have not yet been confirmed.
Earlier, due to liquidity shortages following the COVID-19 crisis, Eastar Jet paid only 40% of employees' salaries for February. In March, they were unable to pay salaries at all. After returning 2 of their 23 aircraft, they are also expected to terminate lease contracts for 8 more planes soon.
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