Aeromexico asks legal permissions to cut 1,830 jobs in order to save annual cash funds
On Wednesday, Aeromexico (AEROMEX.MX) stated that it had requested legal permissions from the United States bankruptcy court to terminate 1,830 employees in a cost-saving measure to weather the economic shocks of the coronavirus pandemic.
The Mexico based carrier airline announced that its proposed layoffs would help save its annual operating costs worth $44 Million.
The firm also added that it would consist of 855 unionized workers and 975 who do not belong to a union.
In June, Aeromexico filed bankruptcy protection and received $1 billion in financing.
Aeromexico started cutting its workforce by nearly 2,000 jobs in the second quarter and 96 workers in the third quarter. Moreover, the airline company reported a net loss worth $130 Million in the third quarter.
Aeromexico’s shares went down by 3.82% in the afternoon trading.