ANA Holdings Inc. said Friday 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 ($880 million) net loss in fiscal 2021, underscoring the severity of the hit from the fallout of COVID-19.
In an attempt to lower 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% 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 despite its robust international cargo and cost-cutting efforts.