Showing pandemic's wrath on airlines, Cebu Pacific workforce slashed by 25%
MANILA, Philippines — Karyn Patiño, who according to her Facebook page hails from Cebu City, is facing the pandemic’s wrath at home with an uncertain future.
Patiño was among the cabin crew members let go by Cebu Air Inc. recently, a victim of the coronavirus disease-2019 (COVID-19)’s damage to the once blossoming travel sector, thanks to budget carriers like the Gokongwei-led airline. “As a breadwinner, I and my family lost the sense of security,” she said in a Facebook post.
Patino was among the “more than 800 employees” to be completely retrenched by the company by August, following a “difficult but necessary decision” by the airline to cut its losses with most flights still grounded even after the government allowed non-essential travels this week.
In a statement on Wednesday evening, Cebu Pacific said the new job cuts represented the outcome of its operational reviews that showed that amid the pandemic, and the uncertainty it brings to tourism, “it was clear that CEB was too big” as a firm to “fulfill its long-term commitment to provide affordable and accessible” flights.
“Rest assured that this process was undertaken with utmost transparency, sensitivity and responsibility to all CEB employees,” the statement read.
The latest number of people being let go marked the biggest so far for the company since March when COVID-19 spiraled into a pandemic. In total, Charo Lagamon, Cebu Pacific’s corporate communications director, said “roughly 25% of total workforce” of the airline.
The 800 people losing jobs by next month add up to the 150 newly hired crew members who were no longer regularized last March. Around 200 others were also offered “optional retirement” after their last day at work last June 30.
All the latest people losing their jobs would get financial support in the form of one month worth of salary per year of service, gratuity pay, the mandated pro-rated 13th month pay, health insurance coverage until year-end and two round-trip tickets to any Cebu Pacific destination.
Impact felt
Among the local airlines, Cebu Pacific is a clear example of how badly the pandemic has hit the tourism and travel sectors. Flag carrier Philippine Airlines, which is bigger than Cebu Pacific, has so far only had to cut 300 jobs from its roster.
“So far, we’re maintaining the status quo. There are no new developments in that regard,” PAL spokesperson Ma. Cielo Villaluna said in a text message.
Budget carriers, which gained popularity for their cheap flights, has banked on travel demand for years before the virus struck and kept everyone at home. For AirAsia Philippines, which just like Cebu Pacific is a budget airline, job cuts had so far been managed, albeit with difficulty.
“AirAsia is exerting all efforts to curb the effects of the pandemic on the business,” the company said in a statement.
That said, AirAsia said government aid would go a long way to keeping not only the company afloat, but also crucial jobs at a time the pandemic is threatening to roll back hard-earned gains against poverty. Cebu Pacific was likewise hoping for the same, but the Duterte government has been cool to any direct financial rescue on failing firms.
“The stimulus would have bought time and saved jobs,” Lagamon said.
In the first quarter, Cebu Pacific’s balance sheet swung to a net loss of P1.18 billion on the back of 15% year-on-year drop in total flights taken during the period. PAL and AirAsia also recorded big losses as of March.
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