Kenya Airways has announced that 600 employees will lose their jobs as it moves to restructure its operations. KQ has been in the limelight since CEO Mbuvi Ngunze took over last year, recording record losses and has struggled to stabilize over the years.
Through tweets from the airline’s official handle, KQ said the process will begin in May 2016 and will see close to 600 people lose their jobs through redundancy while others will be redeployed.
“The Board has, after re-evaluating the various options, come to the painful decision that part of the required overhead savings will be derived from a decrease in staff headcount. We will embark on a restructuring process that will result in approximately 600 (six hundred) members of staff being declared redundant or redeployed elsewhere should their terms of service allow it,” said KQ.
Kenya Airways, the Sub-Saharan Africa’s third-largest airline, has been on a Sh70 billion restructuring programme that it began with reducing its fleet.
Kenya Airways shares have fallen 30 percent since July 30, when the company reported a 25.7 billion-shilling loss and has continued to sink even deeper. Last month, the airline appointed PJT Partners Inc. to advise on how to restructure the company’s balance sheet and raise long-term financing.
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