Kenya Airways to send home 600 employees in restructuring

Kenya Airways flights at the JKIA in Nairobi. Photo WILLIS AWANDU

Close to 600 workers will lose their jobs as Kenya Airways embarks on a recovery plan, it was revealed yesterday.

The move will see the national carrier shed off ten per cent of its 4,000-plus labour force across its various departments.

“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 in part a statement announcing the lay-offs.

“In light of the foregoing, we will embark on a restructuring process that will result in approximately 600 members of staff being declared redundant or redeployed.”

KQ moved to assure staff members that the exercise will be carried out in full compliance with labour laws, Collective Bargaining Agreements (CBAs) and individual staff members’ contracts as appropriate. The employees will know their fate in the coming weeks as the lay-offs begin in May.

“The decision communicated above is not made lightly, and I want to thank all employees for their tremendous resilience and commitment in serving our guests in challenging times for the company,” explained Kenya Airways CEO Mbuvi Ngunze.

Operation Pride

“I am confident that with the support of all staff, unions, shareholders, creditors, financiers and all other stakeholders, Operation Pride will bring back the airline’s long-term profitability and reconfirm our position as the Pride of Africa.”

The job cuts are part of what the airline calls “Operation Pride”-- a turnaround programme initiated last year to address falling financial performance of the airline.

“Operation Pride will deliver over $200 million (about Sh2 billion) of value in various initiatives, half of which focuses on increase in revenue and the other half on cost reduction,” indicated the statement.

“We are on track with our plan, having successfully implemented some of the initiatives such as the sale and sub-lease of aircraft, the reduction of waste in catering, and renegotiation of some contracts.”

Kenya’s flagship carrier made headlines last year after posting a record net loss of Sh25 billion. The poor financial position was blamed on bad investment decisions.

In February this year, the firm contracted consulting firm, Deloitte & Touche, to undertake an audit into the firm’s operations in a bid to “identify areas of weakness and give recommendations that will complement the ongoing turnaround strategy.”

The layoffs, which account for 10 per cent of the overall turnaround plan, will affect various departments and all cadres of staff.