Malaysia Airlines announces plans to lay off a third of its workers

Malaysia Airlines' new CEO told Reuters that the struggling company will cut nearly a third of its 20,000 employees this week, part of an ongoing brand overhaul.

"I'm hired to run the new company entirely on commercial terms, and there's very little margin for error,” Christoph Mueller said. "It depends on the vigor in which we pursue the cost reduction."

In March 2014, flight MH370 disappeared with its 239 passengers and crew; just four months later, another Malaysia Airlines plane was shot down over eastern Ukraine, killing all 298 people aboard the flight. Following a $1.66 billion restructuring in which the company was taken private by Malaysian state investor Khazanah in 2014, Reuters reports that Malaysia Airlines will debut a new name — Malaysia Airlines Bhd — along with a new brand, fewer planes and fewer employees, by September.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up