Malaysia Airlines To Lay Off 6,000 In Company Overhaul

Friday Malaysia Airlines announced a company overhaul in which thousands will be laid off, routes will be cut and management will be changed.
Posted at 4:50 PM, Aug 29, 2014

There's no arguing Malaysia Airlines has been dealt serious blows this year, losing two flights in high-profile disasters within six months. 

Now in an effort to get the airline back on its feet, a major company overhaul will cut some 6,000 jobs — nearly one-third of its workforce. 

Flight MH370 went missing in March. It has yet to be found, but officials believe it could have wrecked into the Indian Ocean. 

Then in July, 298 people died after Flight MH17 was shot down over Ukraine. 

CNN: "Malaysia Airlines says it lost nearly $100 million in the second quarter following the MH17 disaster."

The company shift doesn't stop at job cuts. The BBC reports a number of routes will be cut, new management will be moved in and the airline will become completely state-owned.  

"They'll need some fresh energy to come in and to make some very tough decisions that will probably be unpopular at a political level, but they're things they need to do in order for the airline to survive." 

According to Fox News, since the tragedies, some Malaysia Airlines flights have been departing with rows of empty seats. 

NBC: "Fliers are skittish people, so they tend to stay away. No airline has ever faced two disasters in a row with such mystery attached to them." 

Group Chief Executive of Malaysia Airlines Ahmad Jauhari Yahya, who will eventually be replaced, said of the announcement"Our company has had to undergo a thorough re-examination and re-evaluation in order to reposition ourselves as a stronger and more sustainable Malaysia Airlines for the future."

The restructuring effort is expected to cost the airline about $1.9 billion. Officials hope the overhaul will help make the airline profitable by 2018. 

This video includes images from Getty Images.