Indonesia’s Lion Air Group plans to cut about 2,600 jobs.
Most of these are contract workers which make up about 9% of the group’s 29,000 employees.
The company, which just celebrated its 20th anniversary, had already reduced salaries and cut some management roles.
"Lion Air Group is in a difficult and challenging period due to the effects of Covid-19," said Lion Air spokesman Danang Mandala Prihantoro.
"The tough decision is taken as a strategy to maintain business continuity, and streamline the company’s operations.
Laid-off staff will be placed at the front of the queue for rehiring when conditions improve, the company said.
It is operating only about 10% of its normal schedule of about 1,400 flights a day.
The group operates several brands including Lion Air, Batik Air, Wings Air, and Thai Lion Air.
The domestic Indonesia market is still in the doldrums with flights only now starting to gradually ramp up.
International services are still likely at least a month away, and are unlikely to reach normal levels until next year at the earliest.
The Covid-19 pandemic caused the airline group to postpone its planned IPO.
