According to Portafolio, Latam airline, the largest in Latin America, decided to dismiss 1,000 workers belonging mainly to its subsidiaries in Chile, Colombia, and Peru, as a result of the serious consequences of the COVID-19 pandemic. This is the second dismissal announcement made by the company.
In May, the company had already layoff 1,850 employees in the subsidiaries of those countries as well as in Ecuador.
Latam CEO Roberto Alvo said in a statement that before the new coronavirus crisis, it had about 42,000 people working among all its subsidiaries, but that currently, under the circumstances, it only needs 5,000 for the company to operate.
Before the pandemic, Latam operated around 1,400 daily flights to 145 destinations in 26 countries and had a fleet of 332 aircraft. Currently, however, the airline has 95% of its operations suspended, maintaining only 39 domestic routes in Brazil, 13 in Chile and four international routes.
On May 26th, the company filed for bankruptcy in a New York court while invoking the so-called Chapter 11 (Chapter 11), by which it seeks protection from the Justice while looking for ways to pay creditors and return to normal operations. By doing so, Latam has become the biggest airline company in the world to look for emergency financial reorganization amid the coronavirus crisis, according to Reuters.