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Kenya Airways to layoff 600 workers

Thursday March 31 2016

Kenya Airways plans to send home 600 employees as part of its restructuring bid starting May 2016.

The airline hopes the layoff, which is part of the struggling national carrier’s “Operation Pride” turnaround programme, will help it fly to profitability.

The retrenchment is likely to arouse a backlash from the aviation workers’ unions, one of which clashed with Kenya Airways management on several occasions.

KQ’s chief executive Mbuvi Ngunze described the move as one of the “hard decisions” the airline has had to make to improve profitability, revisit operating model and network, and seek a long-term sustainable financial structure for the heavily indebted carrier.

“So as to achieve these targets, the Board has, after re-evaluating the various options, come to the painful decision that part of the required overhead savings will be derived from a decrease in staff headcount,” read a statement from the airline on Thursday.

The flag carrier hopes to save about Sh2 billion which it says it will channel towards initiatives mainly focused on increasing revenue and cost reduction.

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The airline has barely been meeting its financial obligations in expensive loans has been disposing some of its redundant aircrafts and subleasing others in an effort to rebound from record loss making territory.

The 600 staff to be laid off will be drawn from various departments and all cadres of staff. A list is being worked on to detail the positions and specific staff to be affected by the exercise.

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