JEDDAH, 25 June 2003 — A report conducted by an international company has concluded that Saudi Arabian Airlines could lay off 2,880 employees. This number represents 12 percent of the total of 24,000 airline employees. The 2,880 employees receive salaries totaling SR10 million per month which amounts to just over SR3,500 per person.
The report, excerpts of which were published in Al-Madinah newspaper recently, said that most of the employees were Saudis working in administrative positions and that the airline needs to reduce the number of employees in the face of newly-allowed competition from the private sector.
According to the report, Saudi Arabian Airlines will have no option but to provide good incentives for early retirement. The company expects to give 2,000 employees early retirement every year in order to meet the challenges from in-Kingdom competitors.
