Qantas to Slash Jobs
Thursday April 16, 2009
More people will be experiencing the effects of recession as Australia's biggest airline, Qantas, decided to slash down on its expenses by axing 1,750 jobs including 500 managerial positions this 2009. According to Alan Joyce, CEO of Qantas Airlines, there is a possibility that another 1, 250 positions may also be affected if the downturn continues to hit the business.
Joyce explained that the decision was due to the declining rate of the market conditions. He said Qantas had no choice but to make major changes in order to weather the current commercial environment. "Unfortunately, responding rapidly to declining economic conditions is going to have a direct impact on our staff," Joyce continued to add.
Australian Deputy Prime Minister Julia Gillard expressed sympathy to the employees who lost their jobs and said the government will try to do some measures to help them find new positions.
Aside from axing some of its employees, Qantas airlines will also be grounding 10 of its aircrafts and putting them up for sale. Likewise, they will defer aircraft orders including four A380 airbuses. They will also place a 5% reduction on their flying capacity and cut capital expenditures by around 800 million Australian dollars in 2009-2010.
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