Australian flag carrier Qantas Group has revealed plans to reduce its workforce by at least 6,000 employees across all parts of the business due to the coronavirus (Covid-19) pandemic.
The announcement is part of Qantas’ three-year plan to accelerate its recovery from the Covid-19 crisis by reducing costs to $15bn during these years.
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As part of this move, the company will continue to furlough 15,000 more workers until it resumes operation. This will affect those engaged in international operations.
Qantas employs 29,000 people, 8,000 of which are expected to have returned to work by the end of July.
Additionally, the group plans to ground 100 aircraft for a year or more and retire its six remaining Boeing 747 planes with immediate effect.
Qantas Group CEO Alan Joyce said: “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.
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By GlobalData“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.
“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.”
Meanwhile, the group plans to raise up to $1.9bn, which will facilitate its recovery.
Last week, Qantas reportedly suspended several international flights until late October after the Australian Government extended border closure to next year.
The company reportedly halted aircraft deliveries from manufacturers Airbus and Boeing last month.
