Ailing Japan Airlines (JAL) will slash more than 16,100 jobs in the coming months as it embarks on drastic restructuring efforts.
The entity had filed for bankruptcy protection on January 19, bogged down by mounting losses and dwindling passenger numbers.
Unveiling its restructuring plans on Tuesday, JAL said it will reduce its workforce by 16,114 employees, mainly through early retirement options and the sale of subsidiaries.
"... There will be further head count reductions in the JAL Group, so that the number of group employees will go down from 48,714 as of the end of financial year 2009 to roughly 32,600 at the end of financial year 2010," the airlines said.
JAL will also reduce the number of aircraft by 103 in the coming months. Furthermore, unprofitable routes will be eliminated. "We will sell or liquidate subsidiaries, including selling the hotel business, and concentrate managerial resources on the air transport business," the firm noted.
According to JAL, expenses would be also reduced through a reform of airport cost structures and facilities, as well as by way of reviewing wage and benefit systems.
Things took a turn for the worse at JAL on account of the financial meltdown in 2008-09, which affected the aviation industry worldwide.
