Qantas has confirmed the termination of 2,000 job positions as the carrier moves to outsource ground handling operations at airports across Australia.
The affected staff were notified of the job cuts Monday, Qantas said in a statement.
Qantas pointed to the financial effects of the world health crisis for its decision to retrench following an evaluation of its current workforce costs.
Cabin cleaners, ramp crew, and baggage handlers will lose their jobs at these airports: Brisbane, Perth, Adelaide, Melbourne, Sydney, Canberra, Townsville, Cairns, Darwin, and Alice Springs. Qantas has already outsourced ground work at 55 smaller airports across Australia.
The retrenchments will be completed in early 2021 and bring the number of personnel the airline has terminated since the start of the coronavirus pandemic to about 8,500, or nearly one-third of its workforce before the outbreak.
"This is another tough day for Qantas, especially for our ground handling workers and their families," 9News quoted Qantas Domestic and International chief executive officer Andrew David as saying in a statement.
Qantas estimated a $100 million yearly saving through the use of third-party ground management operations and another $80 million saved by forgoing major spending on aircraft hardware and other equipment.
The move to outsource around 2,500 workers was first announced in August. The carrier will now start the process of consulting with the affected workers about redundancy packages and the next steps to take.
Like most airlines globally, Qantas has been hit hard by the pandemic and forced it to ground most of its planes, and pushed it to shed almost $2 billion in losses this year.
Qantas chief executive Alan Joyce has announced a cost-cutting strategy aimed at saving around $15 billion over the next three years to help the airline recover from the crisis. Qantas is also expecting more than $10 billion in losses next year as a result of a plunge in revenues.
