Mass Layoffs at Oman Air? Here’s what officials have to say

News circulating on social media that Oman Air is allegedly laying off thousands of employees has sparked controversy. Social media users have claimed that the flag carrier of Oman has forcefully terminated over 1,000 workers on short notice and is planning further layoffs.

Several accounts on Reddit are sharing stories of their parents losing their jobs after years of service, receiving only one month's salary and no additional benefits. They also mention layoffs of expatriate workers who had recently started with the airline, citing "more opportunities for Omanis, so we lay off foreigners," without any severance package. Some even allege that HR informed the laid-off employees via email, with no personal contact regarding the sudden termination of their work contracts. Others have pointed out that the airline has always been considered "overstaffed," which may explain the rapid downsizing efforts, including the potential layoffs of Omani workers, to support business sustainability.

While these are some stories circulating on social media platforms, the airline has cleared up all the rumors surrounding potential layoffs of Omani workers with an official statement. “Contrary to reports circulating on various social media platforms regarding the dismissal of 1,000 employees, the company categorically denied this claim. No Omani employees have been terminated due to the restructuring.”

Dismissing the layoffs of Omani workers, the officials clarified that "No Omani employees have been terminated as part of its ongoing restructuring efforts." In fact, they said, “there is a surplus of 365 employees, and the management is working with the relevant authorities to find alternative solutions for these surplus Omani employees. A severance package has been offered to those who were not assigned roles in the new structure, despite the significant associated costs, as a gesture of appreciation for their service. They have been given sufficient notice of no less than four weeks to make a final decision without affecting their rights or employment benefits.”

The airline claims to have given a ‘sufficient’ four-week notice period to ‘laid-off’ employees who were not reassigned to new roles, allowing them to make informed decisions without losing their rights or benefits. “This structure was announced in several phases over the past 18 months. In the first phase, the company offered a severance package exclusively for Omani employees, which was utilised by a number of staff.”

The officials confirmed that as part of their comprehensive transformation plan, they are focusing on enhancing operational efficiency and steering the company toward long-term financial stability. This includes optimising its route network, fleet management, and reviewing the organisational structure to align with industry standards.

The transformation, which has been rolled out over 18 months, has led to the termination of 426 expatriate employees, with priority given to Omanis for available roles. The company's Omanisation rate has risen from 74 per cent to 78 per cent, with many departments exceeding 90 per cent. Oman Air remains committed to further increasing this figure, despite the aviation sector’s reliance on global talent. 

The airline also highlighted the critical need for global expertise in leading the transformation, with plans to replace foreign leaders with Omani talent by the end of 2027 saying, “It is worth noting that the company urgently requires global expertise to lead the current transformation process, while remaining committed to replacing them with national leadership by the end of the anticipated transformation period in late 2027.”

The airline reaffirms its dedication to the Sultanate's economic growth and the development of a skilled, adaptable workforce.

In February 2024, the H.E. Eng. Saeed bin Hamoud bin Saeed Al Mawali, Minister of Transport, Communications and Information Technology and Chairman of the Board of Directors of Oman Air has confirmed about minor layoffs saying, "only about 20 employees were affected as part of the corrective measures."

He also revealed the airline's major transformation plan, "Our aim is to reduce Oman Air’s losses and improve its financial performance without resorting to borrowing from commercial banks or government support. By 2026 we are expecting Oman Air to be stable. We will soon be appointing a new CEO with over 30 years of experience,”

The airline saw its last major layoffs in 2020, as it suffered financial losses due to canceled flights during the COVID-19 pandemic. The airline has joined the list of companies undergoing major layoffs in the Middle East region.