In dispiriting #major business news, thirsty Qantas chief executive Alan Joyce has today announced that the airline will axe 15% of its workforce by retrenching 5000 employees over the next three years, including 1500 management, non-operational and maintenance roles after reporting a $252 million loss in the six months preceding December 2013.
Addressing to the Australian media at an intensive press conference, pictured above, Joyce said the business “must take actions that are unprecedented in scope and depth to strengthen the core” of the airline, necessitating the first of many “tough decisions” to cut costs by $2 billion over three years.
“We have to work our assets harder, become more productive, retire older aircraft, and make sure that our fleet and network are the right size,” said Joyce. “We must defer growth and cut back where we can, so that we can invest where we need to.”
Outlined were $2 billion worth of savings ideas, including – but limited to – cutting capital expenditure by $1 billion and making changes to fleet plans and the Asian Jetstar network, like canning the evidently unprofitable route between Perth and Singapore and euthanising six geriatric 747s. Also on the chop, catering expenses.
First things first though: they need slash their fedora budget and sack this smarmy fiscal sinkhole.
