Wednesday, 4 March 2020

Major job losses at El Al......over 1000 jobs to go and salary cuts to others.

The national airline of Israel, El Al has announced it will axe over 1000 jobs from its 6000 strong workforce and cut the salaries of its management teams as it struggles to cope with increased costs and the Coronavirus - COVID-19 outbreak.

The Israeli government has introduced some of the most stringent entry and travel restrictions on foreign nationals since the coronavirus crisis began by any nation.  It has also forced many Israelis who have returned from abroad into quarantine at home.

Because of these restrictions,  El Al has either axed or reduced many of its flights to Asia and Europe and issued warnings that it revenues would take a massive hit.  This is on top of already heavy costs and difficult trading conditions that have afflicted the carrier in recent years.  

The airline has also asked, Reuters reported, unions to reduce by 20% the salaries of its highest-paid senior workers and in line with many other airlines, is instigating a ban on non-essential expenditure and freezing recruitment. 

“I am determined to do everything to ensure the future of the company and will act with courage, transparency and fairness,”  claimed CEO Gonen Usishkin in a statement on Tuesday. These efficiency steps were “painful,” he said, but are, “meant to allow the company to overcome the crisis and come out stronger.”






Recommended for you...




No comments: