ANA To Slash 9,000 Jobs In 5 Years As Its Airline Navigates Turbulent Skies
ANA Holdings Inc. said it will slash around 9,000 employees within five years as the Japanese airline expects to remain in the red for the second straight year with a 100 billion yen ($880 million) net loss in fiscal 2021, Noriyuki Suzuki reported for Kyodo News.
Photo Insert: The company is still staving off the effects of COVID-19 on air travel
In an attempt to cut fixed costs, the parent of All Nippon Airways Co. will reduce the workforce, mostly in Japan, including ground staff and flight attendants, to around 29,000 in fiscal 2025, down 20 percent from fiscal 2020, through retirement and by curbing new hiring.
Travel demand has not come back as quickly as anticipated, forcing ANA to revise downward its full-year earnings forecasts from a net profit of 3.5 billion yen despite its robust international cargo and cost-cutting efforts.
It posted a record net loss of 404.62 billion yen in the previous business year as travel demand evaporated due to the coronavirus pandemic. "A full-fledged recovery has been delayed to a great extent," ANA President and CEO Shinya Katanozaka said at a press briefing.
ANA expects an operating loss of 125 billion yen, instead of an operating profit of 28 billion yen, with sales projected to rise 45.5 percent to 1.06 trillion yen in the year to March.
In the six months to September, ANA's net loss shrank to 98.80 billion yen from 188.48 billion yen a year earlier. Its operating loss came to 116.01 billion yen, compared with a loss of 280.95 billion yen, as sales rose 47.7 percent to 431.13 billion yen.