El Al Israel Airlines said last Tuesday it was laying off 200 of its employees as part of an efficiency plan aimed at improving its bottom line amid a difficult time for the global aviation industry.
In a press release El Al CEO Elyezer Shkedy said, "For along time, El Al has been dealing with the difficulties faced by the global aviation industry in general, and in Israel in particular. The company is committed to continue streamlining to adjust its operations to the changing market conditions. We are therefore forced to announce the termination of the employment of 200 non-tenured employees and employees with personal contracts. The need to streamline and cut costs is critical in order to continue dealing with the challenges and growing competition. We are doing this with a heavy heart and in the hope that the measure will strengthen El Al."
The reductions of temporary and contract workers comes after Israel's flag carrier had cut its workforce by 126 people to 6,136 in the 12 months ended September 2012.
El Al did not specify how much it would save from the measure but said it would also make further organizational steps to lower its overhead. "Due to the financial situation of the company, rising competition in the aviation sector, in Israel and in the world, and the difficulty in applying the current cost structure of the company, it was decided to take efficiency steps," El Al said.
El Al said it was continuing to negotiate with workers and its union to renew a labor contract and take the needed steps to streamline the company.
The airline posted a 79% rise in third-quarter profit to US$37.4 million after recording losses in the first two quarters of 2012.
