Thousands of employees laid off, this is Lion Air’s full explanation
The aviation industry is increasingly being hit by the storm of the COVID-19 Pandemic that has not yet ended. Now, it is Lion Air’s turn to announce it is laying off thousands of its employees, because its business activities have been shaken by the pandemic. Politik Indonesia
Corporate Communications Strategic of Lion Air Group, Danang Mandala Prihantoro revealed that Lion Air’s revenue condition is currently declining. Meanwhile, the airline still has financial commitments that must be met, amid travel restrictions and a temporary reduction in operational frequency on certain flight routes and the costs that must be borne are still quite large.
“Lion Air Group is carrying out mapping to focus on strengthening all business lines that have an overall impact,” said Danang, quoted from his statement, Sunday, August 1, 2021.
Danang explained that a recovery and reorientation scheme was taken to maintain business continuity and put the business in the right sector. The market conditions and the number of passengers have decreased, resulting in a sharp decline in the number of flying frequencies or production of flight services. Dunia Politik dan Ekonomi
This condition causes the amount of work production with human resources to be calculated or unbalanced. Therefore, within the required period of time, Lion Air Group announced a workforce reduction by laying off employees according to the workload in their respective units. Danang also ensured that this step was not a termination of employment (PHK).
“That is approximately 25-35 percent of employees from 23,000 (approximately 8,050) employees. As long as they (employees) are laid off, Lion Air Group will try to help provide support for living expenses according to the company’s ability,” he said.
He also said that employees who were laid off would receive virtual training according to their respective units. This decision is effective until further notice. Ekonomi Indonesia
“This tough decision was taken with the main aim of effective and efficient concentration, in line with maintaining a sustainable business and maintaining the company. Then streamlining the company’s operations, reducing expenses and restructuring the organization in the midst of flight operational conditions that have not returned to normal from the impact of the COVID-19 pandemic,” he said.
He further said, Lion Air Group appreciates and is very grateful to all employees for their support, performance, dedication, achievements in their respective fields, involvement so far, always having a broad view while going through this situation together to support flight operations. Politik dalam dan luar negeri
“Lion Air Group also appreciates and thanks all employees and from various parties until now they are still operating. The main hope is that the COVID-19 pandemic will end soon, so that flight operations and services will return to normal,” he said.