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ANA halts FY 2021 recruiting due to virus impact

  • May 8, 2020
  • , Jiji Press , 11:25 p.m.
  • English Press

Tokyo, May 8 (Jiji Press)–ANA Holdings Inc. <9202> said Friday that it will temporarily suspend its recruiting activities mainly targeting university students for fiscal 2021, which starts in April next year, due to the impact on its business environment from the spread of the new coronavirus.

The parent of major Japanese airline All Nippon Airways said it will now be difficult to compile a business plan amid the coronavirus crisis, although the company has been promoting cost-cutting efforts to preserve jobs, such as a furlough program.


The company has yet to decide when to resume its recruiting activities.


Due to the coronavirus outbreak, many companies in Japan have been unable to hold job seminars, in order to prevent infections.


Still, it is rare at the moment for a major company to suspend recruiting activities due to earnings deterioration triggered by the coronavirus, sources familiar with the situation said.


With the coronavirus crisis unlikely to be contained anytime soon, similar moves may spread among companies in industries hit hard by the outbreak, the sources said.


For fiscal 2021, ANA Holdings was planning to newly employ a total of some 3,200 people at its 37 group companies, but it is now reviewing the plan.


ANA Holdings will not cancel informal job offers it has already made to some 600 people, including vocational school students, for employment in fiscal 2021.


After enjoying ever-increasing global tourism demand, the airline industry has suddenly faced a plunge in revenue from passenger flight services as many countries introduced entry restrictions due to the coronavirus.


ANA Holdings booked a group net loss of 58.7 billion yen for January-March after a steep fall in passenger demand.


It has declined to release earnings projections for the current year through March, citing uncertainties over its business outlook.


Even if the coronavirus outbreak is contained around August this year, ANA Holdings projects that passenger flight demand will recover only to 50 to 70 pct of the levels before the crisis by the end of the current business year.


On Friday, All Nippon Airways proposed halving employee summer bonuses from a year before during talks with its labor union. Other ANA Holdings group companies also plan to cut summer bonuses in an effort to reduce the group’s personnel expenses by some 7 billion yen.


While saying that there is no change in its recruiting plans, Japan Airlines <9201> said it will look at the number of new hires from this point.

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