Lion Air Group has taken a policy to lay off 35 percent or about 8 thousand of its employees from a total of 23 thousand employees.
Danang Prihantoro, Corporate Communications Strategic of Lion Air Group, said the policy to lay off employees was due to the company’s declining income during the Covid-19 pandemic.
He said that Lion Air Group only operates 10 percent of daily frequency slots with 1,400 flights per day.
“With the reduced of flights frequency, the company’s financial condition has been hit hard. The company’s income is also very minimal, while the operational flight costs that must be borne are still quite large,” said Danang.
He felt the decision to lay off the employees is quite hard. But this is a form of effectiveness and efficiency to maintain the company’s business, reduce expenses and restructure the organization.
Danang said the company would provide living expenses according to the company’s ability for the laid-off employees.
“Even so, for employees who are on furlough, Lion Air Group will try to help for living expenses according to the company’s ability,” he said.