Malaysia Airlines Slashes One-Third of Workforce, Lays Off 6,000 Employees in First Set of Cuts

6,000 employees laid off as Malaysia Airlines works to restructure back to profitable airline.

Nearly one-third of Malaysia Airlines’ staff were laid off as the airline works on a plan to become profitable once again. BBC News reports the Malaysian flag carrier opted to retain 14,000 staff members, removing 6,000 workers in their initial set of cuts.

Now under the leadership of aviation veteran Christoph Mueller, the airline previously announced the layoffs as part of a bigger restructuring plan in light of a tragic 2014. However, according to Mueller, the problems experienced by the airline came well ahead of the losses of Malaysia Airlines Flight 370 and Malaysia Airlines Flight 17.

“We are technically bankrupt,” Mueller said during a press conference, reports BBC. “The decline of performance started long before the tragic events of 2014.”

The layoffs are the first step in a long road to recovery for the embattled airline. During the press conference, Mueller told BBC News the carrier is considering which routes to retain, with a focus on retaining certain flights through partnership. While Mueller would not comment as to which routes were under consideration, the executive told reporters that flights between Malaysia and London were among the top routes, meaning they would not be affected.

Mueller also announced that a subsequent rebranding of Malaysia Airlines was in the works targeted reveal by September. The executive did not detail if the rebranding efforts would also include a name change.

In addition to the cuts announced by Malaysian Airlines, the airline says they do not believe they are done reducing their workforce yet. Mueller told BBC News another round of reductions are coming, as he expected current employees to accept offers at competing airlines in the next two weeks.

[Photo: Malaysia Airlines]