(Bloomberg) — Malaysia Airlines Bhd. said it's starting a corporate revamp with a "hard reset" as it terminates about 6,000 jobs and seeks to cut costs by 20% to return to profitability after two air disasters last year.
The carrier invited at least 14,000 employees to join its new company as part of a turnaround that includes adjusting the size of operations and renegotiating key contracts, the company said Monday. The old structure, Malaysian Airline System Bhd., will cease operations in August, and selected assets and liabilities will be transferred to the new company.
Malaysia Airlines is seeking to reinvent itself after stiff competition led to years of losses, even before flight MH370 disappeared in March last year and MH17 was shot down over Ukraine. The carrier needs time to turn around after being "technically bankrupt," and will break even only in 2018, Chief Executive Officer Christoph Mueller said Monday.
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