Skip to main content

Qantas to cut 5,000 jobs

By Steve Almasy, CNN
February 27, 2014 -- Updated 0101 GMT (0901 HKT)
  • Qantas CEO Alan Joyce says the company needs $2 billion in savings
  • Some of the jobs will come from management positions
  • Joyce says Virgin Australia has an unfair advantage in the country
  • Qantas will sell some of its planes and push back the orders on some new ones

(CNN) -- Calling recent financial losses "an unacceptable and unsustainable result," Qantas CEO Alan Joyce announced Wednesday the airline will cut 5,000 positions over the next three years.

Joyce also said the Australian-based carrier would sell or defer the order of 50 planes as it tried to realize $2 billion Australian in savings by 2017.

About 1,500 of the job reductions will be in management and nonoperational roles. Other cuts will come as the result of changes to the fleet of airplanes and as some routes are taken off the schedule.

"We have already made tough decisions and nobody should doubt that there are more ahead," Joyce said.

The CEO put some of the blame on Virgin Australia, which has increased its flights in Australia since 2011 and has the advantage of an "uneven playing field."

"The Australian domestic market has been distorted by current Australian aviation policy," he said.

He also cited record fuel costs and economic volatility.

Joyce told investors that Qantas lost $252 million Australian in six months. The airline employs 33,000 people, according to the company website. About 93% of them are based in Australia.

CNN's John Raedler contributed to this report.

Part of complete coverage on
October 9, 2014 -- Updated 0804 GMT (1604 HKT)
Liberia, Sierra Leone and Guinea -- the three countries facing the biggest health crisis -- are also facing huge bills to try and contain the virus.
September 22, 2014 -- Updated 1316 GMT (2116 HKT)
Twitter has lost its position in the top 20 coolest brands for the first time in three years.
September 25, 2014 -- Updated 1554 GMT (2354 HKT)
As the crisis in Iraq escalates, CNN looks at how Iraq could crack down on ISIS' oil riches under the guidance of its new oil minister, Adel Abdul Mahdi.
August 29, 2014 -- Updated 0842 GMT (1642 HKT)
Recep Tayyip Erdogan is Turkey's new president . So can he revitalize its economic fortunes?
September 19, 2014 -- Updated 1724 GMT (0124 HKT)
Experts share their tips on cities they see as emerging financial hubs...they're not where you think.
October 9, 2014 -- Updated 1511 GMT (2311 HKT)
Growing numbers of us are willing to serve as bank, teacher or travel agent to people we have never met, and entrust them to serve us in turn.
August 28, 2014 -- Updated 1244 GMT (2044 HKT)
The European Union is stepping in to save its dairy from going sour.
August 18, 2014 -- Updated 1236 GMT (2036 HKT)
Europe's deteriorating relationship with Russia has hit the region's growth, even before new food sanctions begin to bite.
July 16, 2014 -- Updated 1634 GMT (0034 HKT)
With cyberattacks on the rise and here to stay, it's a modern-day challenge for people and businesses to get smarter about preventing them.
August 14, 2014 -- Updated 1324 GMT (2124 HKT)
Airstrikes, rebels seizing control of oil fields, plus a severe refugee crisis are a recipe for market panic. So why are Iraq oil prices stable?
September 19, 2014 -- Updated 1124 GMT (1924 HKT)
Peer-to-peer finance lets businesses bypass bank loans. Creative companies with quirky ideas find new lending models advantageous.
July 20, 2014 -- Updated 1524 GMT (2324 HKT)
Evidence points to pro-Russian separatists as perpetrators of the attack and Vladimir Putin is facing questions, David Clark writes.
September 3, 2014 -- Updated 0952 GMT (1752 HKT)
CNN's Jim Boulden looks on the future of online shopping.
August 5, 2014 -- Updated 1440 GMT (2240 HKT)
The biggest Ebola outbreak in history is taking its toll in Western Africa, hitting some of West Africa's most vulnerable economies.