Qantas cuts 1500 jobs as fuel prices bite
Friday, 18 July 2008
James Thomson
Qantas will slash 1500 positions from its global workforce as it battles soaring oil prices and weaker economic conditions.
Qantas chief executive Geoff Dixon said the aviation industry was facing a major crisis throughout the world. “Acting now, on top of the measures already taken, will protect our competitive position, protect the great majority of over 36,000 jobs and enable us to grow profitably when conditions improve.”
Dixon says the job cuts will be concentrated in non-operational areas, although some operational positions will be slashed.
“Over 20% of our management and head office support jobs will be cut,” he said. The redundancy program will be completed by December.
The company also plans to maintain a recruitment and executive pay freeze for the foreseeable future and retire 22 older aircraft from its 228-strong fleet.
The news comes days after the company reached an agreement with its engineers over pay and conditions. The dispute has resulted in industrial action which disrupted hundreds of flights in the last few months.
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