Eastar Jet to Lay Off 605 Employees Tomorrow... First Restructuring Realized in the Aviation Industry

Employee Count Plummets to One-Third in Half a Year

[Asia Economy Reporter Yu Je-hoon] Eastar Jet, which is attempting to resell after the failure of its merger and acquisition (M&A), is set to begin a large-scale restructuring as previously announced.

According to the aviation industry on the 13th, Eastar Jet will lay off 605 employees on the 14th. Eastar Jet had previously notified 605 employees of layoffs on the 6th of last month. This marks the realization of the first large-scale restructuring in the aviation industry.

After this layoff, the number of Eastar Jet employees will sharply decrease to around 590. The number of employees, which was about 1,680 in the first quarter, has shrunk to about one-third. Inside and outside Eastar Jet, it is expected that the number of employees will further decrease to around 400 after subsequent restructuring.

Eastar Jet is carrying out the restructuring as a 'downsizing' ahead of the resale. An industry insider said, "The number of aircraft has been reduced to six, and since they are looking for a new buyer, this is an attempt for the sale."

The pilots' labor union is opposing this. The union claims, "They are trying to reduce the number of employees to make it easier to shut down."

Meanwhile, after the failure of the M&A with Jeju Air, Eastar Jet has selected Deloitte Anjin, Heungkuk Securities, and the law firm Yulchon as the sale advisors and is proceeding with the sale process. It is known that about four strategic investors (SI) have shown interest in investing.

This content was produced with the assistance of AI translation services.