Low-cost carrier Cebu Pacific finalizes new batch of layoffs

BUDGET carrier Cebu Pacific on Wednesday said it was finalizing the number of employees that will be affected in its next wave of job cuts.

“No final figure yet,” Cebu Pacific Director for Corporate Communications Charo L. Lagamon told BusinessWorld in a phone message on Wednesday.

In a statement, Cebu Pacific, operated by Cebu Air, Inc., said: “The details are still being finalized and Cebu Pacific commits that any decisions and actions that will be taken will be done with utmost transparency, sensitivity and responsibility to our employees, partners and other stakeholders.”

The low-cost airline noted the right-sizing is part of the “transformation process” that it undergoes to “ensure the long-term sustainability of the business, given the expected changes in travel demand and consumer behavior.”

It added that the measure will also be necessary to fulfill its “commitment to provide affordable and accessible air transport services to everyJuan in the years to come.”

Cebu Pacific expects travel recovery to happen over a longer period, with the pandemic “negatively impacting” the entire aviation sector.

In March, the company decided to let go of its 150 newly hired flight attendants as reduced flights entail “less opportunity for them to gain in-flight experience.”

The company assured them that they would be prioritized in the hiring once the business picks up.

It said it had initially implemented austerity measures, which include delaying non-critical projects and programs, a hiring freeze, deferment of some training programs, cancellation of non-essential activities, restricting overtime, and pay cuts by its executives.

The government has allowed the resumption of local flights in areas under general community quarantine with the approval of local government units.

Lance Y. Gokongwei, president and chief executive officer of JG Summit Holdings, Inc., parent of the airline company, had said he expected to fulfill at least 10% of flight schedules, traveling to and from 20 domestic destinations, by the end of June.

The carrier has introduced contactless booking and installed HEPA (high-efficiency particulate air) filters in all its passenger aircraft as part of the safety measures it implements. — Arjay L. Balinbin