The Qantas Group is planning to reduce its pre-coronavirus
workforce by at least 6,000 roles across all parts of the business as it seeks
to save up to AU$15 billion over the next three years in the wake of the
crisis.
The group’s three-year plan includes “rightsizing” its
workforce, restructuring to increase efficiencies across its operations and
recapitalising through an equity raising of up to $1.9 billion to boost its resilience
for recovery.
Qantas will continue a “stand down” programme involving
15,000 employees – particularly those associated with international flying,
which is on hold until at least October while Australia keeps its borders
closed – until these services can return and demand starts to increase.
It will also ground up to 100 aircraft for up to 12 months,
with some kept in storage for longer, and it will retire its six remaining
Boeing 747s with immediate effect – six months ahead of schedule. In addition,
Airbus A321neo and B787-9 deliveries have been deferred.
The airline said around 8,000 of its 29,000 employees are
expected to have returned to work by the end of July, increasing to 15,000 by
the end of 2020 and reaching 21,000 by June 2022. Of the 6,000 job losses,
1,450 will be in corporate roles, 1,500 will be across ground operations – airports,
baggage handling, fleet presentation and ramp operations – 1,050 will be from
its cabin crew base due to the retirement of B747s and less flying activity,
engineering will loose 630 jobs and there will be at least 220 fewer pilots.
Furthermore, 6,900 additional cabin crew and 2,900 pilots will
be placed on stand down from July 2020 onwards.
Qantas CEO Alan Joyce commented: “The Qantas Group entered
this crisis in a better position than most airlines and we have some of the
best prospects for recovery, especially in the domestic market, but it will
take years before international flying returns to what it was.
“We have to position ourselves for several years where
revenue will be much lower. And that means becoming a smaller airline in the
short term. Most airlines will have to restructure in order to survive, which
also means they’ll come through this leaner and more competitive. For all these
reasons, we have to take action now.
“Adapting to this new reality means some very painful
decisions. The job losses we’re announcing today are confronting. So is the
fact thousands more of our people on stand down will face a long interruption
to their airline careers until this work returns. What makes this even harder
is that right before this crisis hit, we were actively recruiting pilots, cabin
crew and ground staff. We’re now facing a sudden reversal of fortune that is no
one’s fault but is very hard to accept.”
Despite the job cuts, Joyce said the airline is “fundamentally
optimistic” about the future thanks to the increasing recovery of its domestic
market, which represented nearly two-thirds of its pre-crisis earnings.
Qantas joins the likes of British Airways, Easyjet, Ryanair,
Lufthansa, SAS, Emirates, Qatar Airways, Virgin Atlantic and Wizz Air in
reducing job roles as a result of the coronavirus pandemic.