Qantas ‘working through’ impact of job cuts on marketing
The direct impact on the marketing department after today’s announcement by airline Qantas that it would cut 5,000 jobs remains unclear, with the airline saying it is currently “working through” the impact of the changes on its various divisions.
Qantas today announced a before tax loss of $252 million for the six months to 31 December 2013, with CEO Alan Joyce conceding that the losses were both “unacceptable and unsustainable”.
In a statement to Mumbrella a spokeswoman for Qantas said the direct impact on the airlines marketing department along with various other divisions is not yet known, but admitted there would be a reduction of some 1,500 non operational staff. “We have confirmed a reduction of management and non-operational roles by 1,500 across the Qantas Group over the next three years and we are working through this,” she said.
The cuts mean Qantas will be forced to reduce capital expenditure by $1bn over two years and may sell up to 50 of its aircraft in an attempt to stem the problem.
Today’s major cuts come only two months after Qantas announced it would cut some 1,000 jobs and review its spending with its top 100 suppliers.
Qantas has recently restructured its marketing team while last year it was reported to have spent $7.9m on media, down 40 per cent on its 2011 expenditure.
Some of the airline’s agencies are likely to be in the top 100 suppliers, with its retained list including media agency ZenithOptimedia, lead creative agency Droga5 while its other retained agencies include R/GA, Razorfish, 303Lowe, Play, Houston, Hulsbosch, Wonder and The Hallway.
Nic Christensen
Did they have 5,000 people in marketing hey?
Wow – no wonder they’d been struggling.
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5,000 marketing staff eh? Nice one Nic.
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The only marketing Qantas needs right now is a job advert for a new CEO.
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Thanks James, we’ve clarified the story to make it clear it is 5000 job across the company.
Nic – Mumbrella
Unionised industries. Pay rates off the charts. Antiquated work practices. Holden, Ford, Toyota – the list will just keep growing until we accept that the world has changed and the old rules just don’t apply anymore. Capital is fleeing this country because for more and more people – given a choice – it just ain’t worth the hassle of doing business here. Alan Joyce isn’t to blame for QF’s troubles – we all are. We all defend Qantas, then fly for a much cheaper fare with an Asian or middle-eastern carrier – on newer aircraft and with comparable service. We all get pissed off about our car manufacturing industry closing, but how many people reading this drive an Australian made car? This head in the sand mentality should scare the shit out of every parent who hopes their kids will have a job, let alone a future in this country. And the answer isn’t to buy a Holden, or to fly Qantas – the answer is for this generation of Australians to have the guts to get rid of the old and create an Australia that will have a future. What Alan Joyce has done is bigger than announce job cuts at Qantas – he’s given all of Australia the reality check we need. For that we should all be grateful.
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Shareholders (Banks) don’t have time for idiots – especially if they are costing them money. Joyce is clearly doing something right.
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Qantas CEO needs to on the list, he and the board have failed… add to this the Jetsar failed interpose strategy is a massive loss line to the business. I’s hard to avoid the fact that we have to fly on Vintage aircraft. Really questioning why I pay my bank $200 a year to have a credit card that gives me frequent Flyer points to flyer on crap planes.
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