The newly-appointed CEO of Malaysia Airlines, Christoph Mueller has announced the company is “technically bankrupt,” after suffering two major plane accidents in 2014.
READ MORE: Malaysia Airlines to fire one third of its staff in major restructuring
The airline also confirmed Monday previously disclosed plans to introduce a major staff reduction program, which will see 6,000 employees lose their jobs. Another 14,000 workersout of a total of 20,000will be transferred to new positions.
The mass layoffs come as the company looks to present a rebranding program in September and have been introduced by Mueller, who was appointed as the airline’s CEO in May.
Malaysia Airlines has been in debt for several years, Mueller said in a statement Monday, while also mentioning that the company’s problems started before last year’s twin tragedies.
"The decline of performance started long before the tragic events of 2014," the airline’s CEO said, according to Reuters.
The company was hit by the tragic loss of two planes last year.
In March 2014, flight MH370 disappeared with 239 people onboard, while travelling from Kuala Lumpur to Beijing. The plane has yet to be found.
Four months later, flight MH17 was downed in a suspected ground-to-air missile in eastern Ukraine, which killed 298 people. It is still not known who carried out the attack, where Ukrainian government forces were fighting against local militias.
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