Qantas to cut 20 per cent of workforce

 
Topic moved from News by bevans on 20 Aug 2020 12:50
  bevans Site Admin

Location: Melbourne, Australia
Qantas has confirmed 6000 permanent jobs will go as the airline recorded a $1.97 billion loss, with its CEO calling for clearer guidelines on border closures.

The chief of Australia’s biggest airline, Alan Joyce, said today’s results were “the sad reality” of COVID-19.

“Some carriers are shrinking their workforce by 30 per cent, 40 per cent, and even 50 per cent. Some airlines may not survive at all,” Mr Joyce said during a press conference this morning.

“The Flying Kangaroo wings are clipped for now, but it’s still got plenty of ambition, and we plan to deliver on it. We are, and always will be, the Spirit of Australia,” Mr Joyce said.

Qantas profits have plunged 91 per cent in what the premier airline has called “the most challenging period in its long history”.
In its 2020 financial year results released on Thursday, the airline recorded a statutory loss after tax of $1.97 billion.


Qantas CEO Alan Joyce. Picture: AAPQantas confirmed the loss of at least 6000 permanent jobs due to the ongoing financial blows caused by the coronavirus pandemic.

“For those leaving in the coming months and weeks ahead, I want to thank you sincerely for your service. It’s been heartbreaking for all of us. I’ve seen people I’ve known for 20 years leave the company in the last couple of weeks, people that have served the company for over 40 years, people that, for no fault of their position or the company’s position, have to leave this organisation,” Mr Joyce said.

He also called for a “clear set of rules” around domestic border decisions during the coronavirus pandemic.

https://www.adelaidenow.com.au/business/companies/qantas-to-cut-at-least-6000-jobs-as-pandemic-costs-airline-billions/news-story/1d6a7d079f1796633b31e2079bda7d71

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  bevans Site Admin

Location: Melbourne, Australia
Qantas announces more job cuts https://t.co/wIjxgrLqiy
  Carnot Minister for Railways

We'll be hearing more and more of this from other companies in the coming months.
  michaelgm Chief Commissioner

We'll be hearing more and more of this from other companies in the coming months.
Carnot
Certainly, cue the parasites, labour hire companies.
  NSWGR8022 Chief Commissioner

Location: From the lands of Journalism and Free Speech
We'll be hearing more and more of this from other companies in the coming months.
Carnot

Personally don't like Qantas and the way they have treated their staff. Qantas staff have been receiving the jobkeeeper which will go through to March if my reading of the government press is right.  Joyce is a poor people person and a poor MD.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
We'll be hearing more and more of this from other companies in the coming months.

Personally don't like Qantas and the way they have treated their staff. Qantas staff have been receiving the jobkeeeper which will go through to March if my reading of the government press is right.  Joyce is a poor people person and a poor MD.
NSWGR8022
On the contrary, he's probably the best MD any Australian airline has had in decades. Qantas was well on its way to be a financially solid company and progressively rebuilding its international network after years of decline with something like 50% of Australian's choosing to fly one of a number of sovereign state owned Middle Eastern Airlines.

Virgin on the other hand was run into the ground by a CEO and owners who didn't care about longterm financial sustainability., rather trying to force both VA and QF to operate routes at a loss. As a result VA Mk2 will likely only need about 50% of its former staff and I expect more cuts to come.

Most of the recent QF layoff announcements are not actual job loses, rather QF outsourcing what it has done in regional centres for decades. So same old, leave today wearing one shirt and arrive tomorrow in another.

Unfortunately whether we like it or not the state and Fed govt's have basically killed the international group of QF and as such most of those jobs will not be required for up to another year and many beyond this, meanwhile the domestic sector is also a fraction of its former self with no signs it will end any time soon.
  michaelgm Chief Commissioner

We'll be hearing more and more of this from other companies in the coming months.

Personally don't like Qantas and the way they have treated their staff. Qantas staff have been receiving the jobkeeeper which will go through to March if my reading of the government press is right.  Joyce is a poor people person and a poor MD.
On the contrary, he's probably the best MD any Australian airline has had in decades. Qantas was well on its way to be a financially solid company and progressively rebuilding its international network after years of decline with something like 50% of Australian's choosing to fly one of a number of sovereign state owned Middle Eastern Airlines.

Virgin on the other hand was run into the ground by a CEO and owners who didn't care about longterm financial sustainability., rather trying to force both VA and QF to operate routes at a loss. As a result VA Mk2 will likely only need about 50% of its former staff and I expect more cuts to come.

Most of the recent QF layoff announcements are not actual job loses, rather QF outsourcing what it has done in regional centres for decades. So same old, leave today wearing one shirt and arrive tomorrow in another.

Unfortunately whether we like it or not the state and Fed govt's have basically killed the international group of QF and as such most of those jobs will not be required for up to another year and many beyond this, meanwhile the domestic sector is also a fraction of its former self with no signs it will end any time soon.
RTT_Rules
So same old, Yes. Regular occurrence.

leave today wearing one shirt and arrive tomorrow in another. No. Unrealised and simplistic assumption.
Your job is outsourced.
T&C’s are improved, impossible.
T&C’s remain and are transferred, highly unlikely.
T&C’s slashed, flexibility increased-bend over, the norm.
  Madjikthise Deputy Commissioner

It's probably worded wrong but isn't a 91% reduction in profit still a profit?
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
So same old, Yes. Regular occurrence.

leave today wearing one shirt and arrive tomorrow in another. No. Unrealised and simplistic assumption.
Your job is outsourced.
T&C’s are improved, impossible.
T&C’s remain and are transferred, highly unlikely.
T&C’s slashed, flexibility increased-bend over, the norm.
michaelgm
Who knows, but the bench mark was set years ago in the regional areas where you see the guy checking you in, is also the same one guiding the plane in and later loading bags onto the plane, its called flexibility and productivity and reduces the cost of travel.

Anyway, the point is QF is not kicking all those people to the street, simply outsourcing the roles which they are entitled to and already do to many other parts of the business and is very common. I know people don't always like it, but this is business.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
It's probably worded wrong but isn't a 91% reduction in profit still a profit?
Madjikthise
Yes, but not sustainable.
  BrentonGolding Chief Commissioner

Location: Maldon Junction
It's probably worded wrong but isn't a 91% reduction in profit still a profit?
Madjikthise
Underlying profit down 91% to $124 million on the back of a 21% drop in revenue for the FY. Expect revenues to plummet much further in the current (2021) financial year

Add to that (or subtract if you like) a $1.4 BILLION write down in asset values and $642 million in one off restructuring costs due to covid and you get to a statutory loss of around $2 billion
  freightgate Minister for Railways

Location: Albury, New South Wales
One minute this Qantas CEO is asking for
Money from the feds and receives a swag of cash and the next month he wipes out Australia jobs after complaining about how tough it is for the airline. How can anyone have respect for this guy ?
  BrentonGolding Chief Commissioner

Location: Maldon Junction
One minute this Qantas CEO is asking for
Money from the feds and receives a swag of cash and the next month he wipes out Australia jobs after complaining about how tough it is for the airline. How can anyone have respect for this guy ?
freightgate
Please tell us how you would go about running an airline during a global pandemic when most of your fleet has been grounded due to decisions taken by a bunch of governments, decisions which are totally out of your control?

I am not sure how much $$$ Qantas has in the bank but that $124 million profit will disappear in months if something is not done to stem the current bleeding.

The only thing Joyce can do is try to control the things that are his to control. Better 20% of the jobs go than the whole lot in a few months time when the business runs out of $$$ and goes broke due to a misguided policy of trying to keep everyone on the payroll.

Wake up, this stuff is going on right across the country and the only thing stopping it from becoming a full blown economic catastrophe is the Feds handing out money left right and centre. Businesses cannot continue to operate without income. It's that simple.
  NSWGR8022 Chief Commissioner

Location: From the lands of Journalism and Free Speech
Qantas is burning around $40m in cash per week but has already received a major handout.  

I agree the idea of taking the handout and then needlessly sacking 2,500 staff is not great.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
Qantas is burning around $40m in cash per week but has already received a major handout.  

I agree the idea of taking the handout and then needlessly sacking 2,500 staff is not great.
NSWGR8022
Not so simple.

1) Most of those people will be given the same jobs with the contractor, the money is for the people who remain.

2) Do you want Qantas to continue taking money from the taxpayer to fund a work force that doesn't have anything to do?  The govt is basically paying QF to retain a viable airline ready for a slow return to normal.

The issue is Qantas's financial situation is a directly correlation to the ongoing restrictions in travel imposed by the state and Fed govts. Prior to the CV, QF had a strong and robust balance sheet, unlike VA. QF was on track to declare a $1B profit and pay Corporate tax. It was sought assistance to minimise the furloughs and layoffs based on the expected at the time grounding. Remember they thought they would be back international flying by now.
  YM-Mundrabilla Minister for Railways

Location: Mundrabilla but I'd rather be in Narvik
We hear almost daily of a backlog of potential passengers both local and overseas.
Why cannot Qantas provide at least a skeleton service with crews otherwise doing nothing bearing in mind that they can pretty much charge what fares they like?
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
We hear almost daily of a backlog of potential passengers both local and overseas.
Why cannot Qantas provide at least a skeleton service with crews otherwise doing nothing bearing in mind that they can pretty much charge what fares they like?
YM-Mundrabilla
I can only assume domestically the issue is the state govt controls.

As for OS, something that is an EXTREMELY HOT topic right now with in the global Australian expat community and something I'm more familiar with, again its not a Qantas or any other airlines problem, noting most planes arriving in Australia over the last 8 weeks have an average of less than 50 people per flight on planes designed for 250 to 400 with EC seats mostly empty. Again its all due to the state Premiers caps.

FYI - in the first few weeks, passengers were at times being rejected at the gate as the airlines all compared numbers for flights arriving at a specific city on the same day. These are people that have often closed down their homes, bank accounts, kids out of school etc, literally ready to leave the country and at the last 1h before the flight, sorry you cannot go today, tomorrow or for the next 2 mths.
  YM-Mundrabilla Minister for Railways

Location: Mundrabilla but I'd rather be in Narvik
Does EC = Y ?
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
Does EC = Y ?
YM-Mundrabilla
Yes sorry, expat speak.

If the cap was removed tomorrow, Emirates, Etihad and Qatar would be dumping probably 10,000 or more strandard Aussies into Australia within 1-2 weeks from the Sub-Cont, Middle East, Africa and Europe using existing flying spare capacity.
  YM-Mundrabilla Minister for Railways

Location: Mundrabilla but I'd rather be in Narvik
Does EC = Y ?
YM-Mundrabilla
Thanks RTT

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