Latam Airlines, Latin America’s largest carrier, is laying off 1,400 employees in Chile, Peru, Colombia and Ecuador. The figure represents about 3% of the company’s workforce, according to Reuters.
The company is the first airline to announce layoffs in Latin America, although the coronavirus pandemic is causing a severe crisis in the industry.
Recently, Colombia-based Avianca, the second-largest in the region, has filed for Chapter 11 bankruptcy in the U.S. after losing over 80% of its revenues.
In Brazil, where Latam’s division is not laying off personnel, the three biggest airlines agreed to an emergency rescue package proposed by banks.
“Unfortunately, we have concluded that we have no other option but to downsize the company,” Latam’s CEO Roberto Alvo said in a video directed at workers.