Qantas has announced plans to cut 5,000 jobs, after reporting losses of A$252 million over the last six months of 2013.
SYDNEY - Australian national carrier Qantas will axe 5000 jobs over three years to cut costs by A$2 billion after posting A$252 million losses for the last six months of 2013, the company announced on Thursday.
The job cuts include 1,500 in administration and non-operational roles and a swathe of jobs in maintenance, along with a wage freeze and restructuring of maintenance and catering management of Qantas.
Alan Joyce, CEO of Qantas, said the company´s performance is unacceptable and the current situation is unsustainable. Joyce will also take a 36 percent pay cut.
“Qantas was making hard but necessary decisions to protect as many jobs as possible and build a strong business for the future,” he said.
Qantas, established in 1920, employs more than 33 thousand Australians. Job losses will see its workforce reduced by 15 percent.
The company currently has a 65 percent market share in Australia and nearly 20 percent of international destinations from Australia.
Australian unions condemned the job cuts, saying it was outrageous that employees were paying for poor management decisions. Qantas shares have dropped in value from A$3 in 2009 to their current value of A$1.18.
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