Virgin Australia To Cut 750 Head Office And Corporate Jobs
Virgin Australia says it will cut 750 corporate and head office positions as part of a restructure after posting a "disappointing" full-year loss of $349.1 million.
Revenue for the 12 months to June 30 rose 7.5 percent to $5.83 billion and the airline has not declared a final dividend.
"There is no doubt that we are operating in a tough economic climate with high fuel, a low Australian dollar and subdued trading conditions, "Virgin Australia Group CEO and Managing Director Paul Scurrah said on Wednesday.
A new Executive Leadership Team that has a "simplified organisational structure" will be developed Virgin Australia confirmed in a statement released on Wednesday.
These measures will apparently "rightsize" the corporate and head office workforce to "drive greater business integration, customer focus and reduce costs".
One of the major changes to the Virgin Australia Group's structure will see Virgin Australia, Virgin Regional Airlines and Tigerair combined into a single group managed by the same team.
"I've been receiving the structure of the organisiation since I joined the Group in March with a view to simplify the current structure which has grown overly complex over time," Scurrah said.
Virgin claims the cuts will streamline business operations so there's less double-handling of processes between the three arms of the company.
There will be no changes to the Virgin Frequent Flyer program as it has a different ownership structure.
It's unclear when and where in Australia job cuts will occur at this stage.
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