The axe falls on Kenya Airways employees as retrenchment kicks off

KQ continues to struggle after announcing jaw-breaking losses

kenta airways plane

Kenya Airways has on Friday, July 8, retrenched 80 employees in a bid to seek “a long-term sustainable financial structure for the airline”.

The company head Mbuvi Ngunze said in a statement that the retrenchment is in line with the “Operation Pride” aimed at improving profitability and revisit the operating model and network.

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“Today, we will commence with the first phase of redundancies which will impact approximately 80 staff members”, he said as quoted by the Star.

According to the CEO, the Operation Pride will deliver USD 200 million dollars as the airline had cut down on expenditures, sale and sublease of aircraft, the reduction of waste in catering, and renegotiation of some contracts.

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He added: “We have made some difficult decisions to make substantial changes in all aspects of our business, including reducing our fleet in line with the current fiscal realities. It is in this light that we announced our intention to right-size the organisation to align with the reduced fleet size and improve the productivity of our staff across the network.”

Mbuvi assured the affected employees that they will be laid off in accordance with labour laws.

“We are cognizant that this is a difficult period for Kenya Airways and employee assistance will be available for affected staff at the time of the exercise and for two weeks thereafter. The process will be in full compliance with labour laws, Collective Bargaining Agreements (CBA),” continued the statement.

The airline, which recently reported an earth-shaking full-year loss of Sh25.7 billion, continues to face serious financial challenges.

READ: KQ pilots want the airline boss Ngunze to resign

Just recently, pilots threatened to go on strike as they called for the resignation of CEO Mbuvi Ngunze over alleged mismanagement.

Last year the national assembly transport committee summoned teams from both the transport ministry and the treasury to explain the status of the troubled national carrier in the wake of the declaration the loss.


Via the Star