LATAM Airlines Group's Brazilian subsidiary TAM has laid off 780 employees in the last two months as it seeks to cut costs in a market that has struggled with overcapacity and slowing economic growth.
The dismissed workers made up about 4% of LATAM's workforce in Brazil, says a statement from the country's secretary of aviation released after a meeting between the authorities and TAM's president Marco Antonio Bologna. The airline now employs 29,500 people in Brazil.
There will be no further staff cuts, adds the statement. Citing Bologna, the statement says LATAM is on track for an operating profit margin of 4% to 6%, which it had previously forecasted.
Like many Brazilian airlines, TAM has cut domestic capacity this year as economic growth in Brazil slows down. Depreciation of the Brazilian real and high fuel costs have also impacted airlines negatively. LATAM said in August it would reduce domestic Brazil capacity by 7% to 9%, down from 5% to 7% previously.