Qantas is cutting 6,000 jobs and raising $1.3 billion to survive the pandemic - CNN
The cuts announced Thursday account for 20% of Qantas’ total workforce of 29,000 people, according to the company. They will primarily affect the airline’s corporate, ground and flight staff, while another 15,000 workers will remain on furlough “until flying returns,” it added. Jetstar, the company’s budget carrier, will also be affected.
The airline is also making drastic changes to its fleet as part of a broader, three-year plan to help its business recover from the historic slump in global travel. Most of the carrier’s international aircraft — or up to 100 planes — will stay grounded for a year, the company said. Its six Boeing(BA) 747 jumbo jets are also being retired six months ahead of schedule.
The new measures are expected to help the company lower costs by 15 billion Australian dollars ($10 billion) over three years. After that, it’s targeting 1 billion Australian dollars (roughly $686,000) in recurring savings each year.
Qantas shares, which have fallen 41% this year, were halted from trading in Sydney on Thursday as it made the announcement. Its fundraising plan will involve offering an additional 1.36 billion Australian dollars (about $933,000) worth of shares to institutional investors, at about a 13% discount to the stock’s closing price Wednesday.
The remaining $500 million will be sought through a separate share sale plan offered to existing investors.
To lead the turnaround strategy, CEO Alan Joyce has Source…
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