MANILA - Lufthansa Technik Philippines said Friday it would cut 20 percent of its workforce, or 300 employees, saying it has no choice but to downsize amid the impact of the pandemic on the aviation industry.
Lufthansa, which maintains, repairs and overhauls aircraft for carriers operating in the country, said its "rightsizing program" would be carried out in 2 phases: first by voluntary separation, then by retrenchment, if necessary.
Some 2,700 will remain after the layoffs.
"This decision comes after careful study and consideration of the business situation as a result of the pandemic and its effects on the aviation industry," LTP president and CEO Elmar Lutter said in a statement.
He said the layoffs would be "temporary until our industry fully recovers," and that rehires in the future would prioritize outgoing workers.
The company will offer packages consistent with standards set by the Department of Labor and Employment, he said.
The aviation industry was badly hit with the closing of borders during the pandemic.
Major carriers like Philippine Airlines, Cebu Pacific and AirAsia Philippines each had their share of employee cuts, with PAL letting go of 2,300 workers, Cebu Pacific 800 workers, and AirAsia around 264.
Roberto Lim, vice chairperson of the Air Carriers Association of the Philippines, earlier noted the need to implement measures such as emergency loans and government credit guarantee to assist the aviation companies in recovering losses from the pandemic.