Unemployment Woes Worsen as Big Philippine Companies Cut Jobs
(Bloomberg) -- Aboitiz Equity Ventures Inc. and Cebu Air Inc., in separate statements, said they will have to cut jobs as the pandemic hurts their operations.
The Aboitiz group, which includes unlisted units and employs more than 11,000 people, said some members of the team will be let go by July 31 after a review of operations. The Philippines’ largest budget carrier is finalizing a right-sizing program for its 4,000-strong workforce, Cebu Air said.
Neither company disclosed the number of jobs that would be cut.
- Aboitiz “has not been spared by the health and economic crisis” but it remains committed to its power, food, banking, infrastructure, land, and construction businesses, it said. The listed holding firm slashed its capital expenditure by a third for this year.
- JG Summit Holdings Inc.’s airline unit said that recovery could take longer than expected given the changes in travel demand and consumer behavior. Management took pay cuts in March to hold off job losses. The carrier is also negotiating to defer delivery of new aircraft to help lower 2020 spending by half.
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