Tourism

Cebu Pacific’s ground handling services firm to axe over 1,000 workers amid COVID cost-cutting

1Aviation Groundhandling Services Corp., the ground-handling service provider of the Gokongwei-led Cebu Pacific, is laying off more than 1,000 employees as the coronavirus pandemic continues to wreak havoc on travel.

“This unprecedented and uncertain situation with COVID-19 will continue to impact the aviation industry for many months ahead. Most forecasts show that it will take about two years before the aviation industry recovers from the impact of the COVID-19 pandemic.

Given this situation, it is clear that the company still needs to take more drastic measures to ensure its survival,” said 1Aviation, which is majority owned by Philippine Airport Ground Support Solutions’ Jefferson G. Cheng.

Effective July 20, 25% of the company’s 5,000 employees would be laid off, the company said. Last April, 1Aviation let go 400 newly-hired staff as part of cost mitigation measures to stay afloat.

These measures also include include a freeze on hiring, key projects and capital expenditures, restricting overtime and deferment of salary increases

“The welfare of affected employees will be taken cared of as we always do, with packages that are above what the law requires. We also assured them that they will be prioritized for hiring once the situation stabilizes and business picks up again,” 1Aviation said.

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