Aboitiz, Cebu Pacific to cut jobs amid coronavirus crisis

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Metro Manila (CNN Philippines, June 24) — Aboitiz Group and Cebu Pacific announced on Wednesday they will be laying off employees owing to business setbacks caused by the COVID-19 pandemic.

In a statement, Aboitiz said it had conducted a review of its operations in light of the challenges posed by the pandemic.

"Part of the review is the rationalization of its workforce, where, regrettably, several team members will be affected by their service ending on July 31, 2020," it said.

Employees to be let go shall receive a "substantial separation package" to support them through the ordeal, Aboitiz added.

In a separate statement, Cebu Pacific said right sizing "will be necessary to fulfil our commitment to provide affordable and accessible air transport services to everyJuan in the years to come."

The budget carrier likewise noted it is going through a transformation process hoping to ensure long-term sustainability, with travel demand and consumer behavior expected to change due to the pandemic. COVID-19 had affected the aviation industry negatively, it added.

"The details are still being finalized and Cebu Pacific commits that any decisions and actions that will be taken will be done with utmost transparency, sensitivity and responsibility to our employees, partners and other stakeholders," the firm said.

This is not the first time Cebu Pacific cut jobs because of coronavirus crisis.

In mid-March, it laid off more than 150 cabin crew members due to travel bans to and from Manila and key provinces.

Fellow airline companies were also not spared from the pandemic's effects, with AirAsia retrenching 12 percent of its workforce in early June and Philippine Airlines letting go of 300 employees in February.

Both Aboitiz and Cebu Pacific have yet to announce the exact number of employees they will be laying off.