TAM airline to reduce operations in Brazil, job cuts expected

The airline company TAM announced Monday (Jul 20) a reduction of up to 20 percent in its domestic activities, with an expected two percent of its staff dismissed.

“There will be no impact on crew teams, in view of the plans for medium-term growth. The company will offer support to collaborators affected in the form of specialist advice aimed at professional reassignment,” the airline declared through a note.

The decision, TAM says, will not cut the firm's coverage, as no destination is to be left without flights. “TAM is taking this measure to face Brazil's difficult economic situation. It is therefore necessary to seek network adjustments, further boosting our competitiveness in the country, and preventing any harm to our passengers' connectivity” said CEO Claudia Sender.

In May, the Brazilian Association of Air Companies (Abear) had detected stagnation in the sector's domestic demand, with a growth no higher than one percent compared to the same month last year.

Translated by Fabrício Ferreira