Emirates Group plans to make substantial cuts in its workforce as it tries to mitigate the financial costs of the COVID-19 pandemic.
The Gulf carrier suspended all regular passenger flights in March and like all airlines has struggled to cope, financially, with the approximate 95% drop in demand for air travel on a global basis. While no official announcement has been made, it is expected that Emirates will shelve approximately 30,000 jobs, virtually 30% of its 105,000-strong workforce. The company spokesperson confirmed that Emirates was conducting a review of “costs and resourcing against business projections,” adding that: “Any such decision will be communicated in an appropriate fashion. Like any responsible business would do, our executive team has directed all departments to conduct a thorough review of costs and resourcing against business projections.”
Emirates is one of the world’s biggest long-haul carriers and has already indicated that it will raise debt to help it through the current financial crisis, though it does not anticipate that air travel will recover for at least eighteen months. It reported a 21% rise in profit for its financial year ending March 31, but admitted that the pandemic had damaged its fourth-quarter performance.