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Lion Air Group will lay off around 2,600 staff across its three Indonesian units, Lion Air, Wings Air (Indonesia), and Batik Air, as it fights to adapt to the current market environment.

Spokesperson Danang Mandala Prihantoro clarified in a statement to The Jakarta Post that the downsizing exclusively affects contract workers and no permanent staff are being laid off. Following this restructuring, Lion Air's Indonesian workforce will shrink by around 9%.

Lion Air is currently operating less than 15% of its normal schedule as Indonesia's borders remain closed to foreigners and domestic travel is still restricted. The group has followed other domestic airlines, including Garuda Indonesia Group units as well as Susi Air, in announcing sweeping job cuts.