Qantas to slash 6,000 jobs, while 15,000 workers remain stood down

Qantas will slash around 20 per cent of its workforce, totalling around 6,000 jobs, as the airline battles to recover from the effects of Covid-19. Qantas Group CEO Alan Joyce addressed the media in Sydney this morning as he revealed the company’s coronavirus recovery plan.

The job losses include at least 1,450 non-operational jobs, mainly in corporate roles, around 1,500 ground operation jobs, more than 1,000 cabin crew roles and at least 220 pilots will lost their jobs, predominantly due to the early retirement of all remaining 747s.

“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,” Joyce said on Thursday morning. “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.”

Joyce went on to say that today’s decision was made even harder due to the fact that the airline had been actively recruiting staff, particularly pilots and cabin crew members, in the lead-up to the outbreak of Covid-19.

He added: “Despite the hard choices we’re making today, we’re fundamentally optimistic about the future. Almost two-thirds of our pre-crisis earnings came from the domestic market, which is likely to recover fastest – particularly as state borders prepare to open. We have the leading full service and low fares airlines in Australia, where distance makes air travel essential, and diversified earnings through Qantas Loyalty.”

It is all part of Qantas’ three-year Covid-19 recovery plan, which will also see the airline aim to reduce its costs by $15 billion. The focus of the plan is to “rightsize” the Group’s workforce, “restructure” in a changed market and “recapitalise” to strengthen the Group’s financial resilience.

Meanwhile, with the expectation that international travel will not be resuming anytime soon, Qantas has also parked its A-380s for three years. While around 100 aircraft will be grounded for up to 12 months.

Joyce also confirmed he has spoken to Prime Minister Scott Morrison and Treasurer Josh Frydenberg about the possibility of extending the JobKeeper package past September.