Boeing Asia Pacific Aviation Services (Bapas), a joint venture between The Boeing Company and SIA Engineering Company, will cut 13 percent of its workforce.
Twenty-seven of Bapas’s 204 employees are affected by the cut.
After the cut, 82 percent of the workforce will be Singaporean. Before the cut, the Singaporeans made up 79 percent of the workforce.
In a joint statement with the Singapore Industrial and Services Employee's Union (SISEU), Bapas stated that the cut was viewed as a "last resort".
The company has already exhausted all other ways to save costs, and at the start of the pandemic, steps were taken to manage costs and save jobs.
The company added that it had worked with SISEU to provide fair pay and job-related support to the employees concerned.
Aviation One of the sectors hardest hit by COVID-19
Image credit: Bloomberg
Airlines around the world are struggling with the Covid-19 outbreak as a record number of planes have been on the ground for months.
By June 2020, major airlines like Lufthansa, British Airways and Emirates had shed tens of thousands of jobs.
Despite the additional support of the aerospace industry worth S $ 187 million, Singapore Airlines (SIA) has already sold half of the S $ 8.8 billion stock sales in two months.
Over 6,000 SIA employees have also taken unpaid vacation to help the company with the air traffic collapse.
Aerospace component manufacturers are also affected by the pandemic. The aircraft manufacturer Airbus laid off some of its employees in Singapore earlier this month.
Although the European manufacturer did not want to disclose how many workers it laid off, the lack of travel has dampened demand for its aviation support services.
It probably isn't the end of the aviation cuts
With most countries' borders closed to some extent, airlines are unlikely to see any performance improvement anytime soon.
Although governments around the world have introduced green lanes for business travelers, these efforts do not go a long way towards increasing airline profits.
There are currently only two green lanes open in Singapore, the equivalent of only 15 SIA flights operating between China and Malaysia per week.
Airlines have also found innovative ways to maximize their resources.
For example, Taiwanese Eva Airlines has launched flights to nowhere to emulate the travel experience for customers with a travel shortage.
However, with most airlines' revenue streams cut off, the aviation sector is unlikely to get back to its pre-Covid-19 performance anytime soon.
As business continues to take a hit, the cuts are likely to continue.
Selected image source: The Street