In a memo to employees, the airline's vice-president of flight operations Sulaiman Yaqoobi says the reduction in headcount follows a cut in capacity, and is part of the airline's plan for a "7 to 10% reduction in our operating cost across its network."
The memo notes that the airline has 2,065 pilots in its ranks, which is a surplus of around 160 due to the reduced flying by the airline.
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He adds that the past year was "extremely challenging", and this is expected to continue into 2019.
"However, while we posted a significant loss at the end of last year, I want to reassure you that we are on the right trajectory and are getting closer to bridging the gap between operating costs and revenue," Yagoobi says.
Etihad reported a $1.52 billion loss for 2017, which was a 22% reduction on the previous year as it started a major transformation initiative.
That saw it cut services to Perth and Edinburgh in 2018, as it changed focus to serving point-to-point markets.
The Abu Dhabi-based carrier recently cancelled orders for 10 Airbus A320neos, but has maintained an order for 26 A321neos.
(Aaron Chong - FlightGlobal News)