Qantas axes 6,000 jobs

Just in via Sky News:

Qantas has requested a trading halt ahead of an announcement to axe 6,000 jobs – 20% of the workforce. This comes as the global aviation industry is facing three years of disruptions from COVID-19.

The company is expected to announce that a further 15,000 employees will remain stood down until further notice.

The company is also planning to raise $1.9 billion in equity to help it continue flying.

Leith van Onselen

Comments

    • tripsterMEMBER

      A very bullish indicator for house prices? CoreLogic daily index probably moved up immediately on the back of it?

    • I can’t stand Alan Joyce but be care full with the language.
      Probably an honest mistake.

    • Ukraine fnMEMBER

      Expect a lot more announcements like this from other sectors of the economy as we roll on . Mark December 2019 as the last month of what the last 30 years of the Australian dream looked like.
      Bcnich will be proven right we (Australia) will be heading to deep recession/ depression like the Titanic to an iceberg.

      • My mate was just made redundant at Boral, another restructure….and our company just concluding wave 2

    • Herman Milson

      Poof! Alan Joyce should maybe pay back some of the $32 million in bonuses he’s been paid in the last 6 years, without Qantas ever paying a cent of tax.

    • “Poof! 6,000 jobs gone!”

      Now that cracked me up. Let’s hear it for free speech!

    • Peachy, people around these parts were talking about your absence.
      Was it what I said about you and Steve Keen?

  1. Lord Winchester EntwhistleMEMBER

    Wow, that is sad for a lot of folks….that surely has changed the calculus on JK/JS. After all, most of these people aren’t Scrotumo’s perceived dole bludging set.

    • They are now. Doesn’t matter that they weren’t, anyone unlucky enough to lose their job is a loser, remember?

    • truthisfashionable

      Yep, huge amount of Eastern Suburbs and Northern Beaches people working there.

      I am shocked by the amount being cut in one go.

    • Nick1970MEMBER

      How do you know? A fair percentage (especially long term employees) have possibly paid off their homes and are looking forward to the redundancy cheque.

    • Goldstandard1MEMBER

      +1. Just follow the Singapore airlines model. It’s a national airline to be proud of and acts as a marketing tool for the place.

    • Exactly. Just have one national carrier that helps the tourism industry as much as possible. Same logic applies to having a nationalised telecommunications carrier that helps the services industry as much as possible.

      • ChristopherMEMBER

        I was out in a remote part of the Great Ocean Road last weekend and saw an old Telecoms pit in the middle nowhere, was travelling with my Father at the time and he remarked to me that was built when we did things to advance the country not the individual.

        I fail to see how anything like that would be constructed ever again.

      • Don’t stop at those industries. Include all basic infrastructure and one bank. As per the halcyon days of Australia.

    • I wouldn’t really want more public investment in aviation whether that be nationalizing the carrier or otherwise especially since it is a discretionary service rather than an essential one for most travel undertaken. Even most corporate travel has proven to be discretionary as video conference has been found more than adequate during COVID (especially when everyone else is doing it too). When you have hospitals chronically underfunded, traffic jams everywhere, train lines at 110% capacity, local infrastructure underfunded in the burbs, etc (i.e. actual problems to spend money on) I don’t see the need to prop up a sector that right now is at over capacity with taxpayer funds.

      On a more opinionated note I think the aviation industry in recent times has grown to be too big anyway. Many of the jobs that it employs were destined to be automated away especially at newer airports so this just speeds things up a little. If COVID is to stay (and I suspect it may) then the world will be a little less globalized going forward which means the sector needs to shrink anyway. Its a highly cyclical industry that has large negative externalities (environmentally, net importer to our current account, etc) – and IMO encourages people to leave when the “going gets tough” rather than touring/improving their own backyard especially among the young millennials. Having a national carrier that does the required aviation and keeps regions connected may all that’s required from an Australian standpoint.

      • Brett JamesMEMBER

        After all the noise Alan made about Virgin potentially receiving handouts? Unlikely….

        • Huh?? that’s exactly why this will be structured as an Equity offering that just happens to be 100% taken up by the Government (or some gov controlled entity Futurefund etc)…I wouldn’t be at all surprised to find out that this new equity contained some hidden Hybrid feature enabling the airline to repurchase / swap the Equity for Debt.
          the concept is called doing “what is necessary” it’s a concept that is front and center in all Scomo’s decisions.

          • Brett JamesMEMBER

            I’m lost then.

            Why would gov purchase Qantas shares if they wouldn’t do similar for Virgin?

          • To paraphrase George Orwell’s Animal Farm
            “All animals are equal but some animals are more equal than others”
            Of course it goes without saying that the most important commandment in Animalism is that “all Animals are equal” and such is the quandary of equality.

    • I will – their SPP price is set at 15% below current MV. I only have 94 shares but can apply for up to $30,000 worth and sell when they are issued.

      • Bought a swathe at $3.79 to hold come what may for the next 10 years. The appeal of a SPP at $3.65 doesn’t sound that great to me. May have a look again in the low $3s. Maybe even $2s if it gets a ‘lil nasty 😉

        You’d want to be quick on your feet with the dump ‘n’ run Jason

    • bolstroodMEMBER

      If memory serves , Mathias bought a lot of Qantas shares when Virgin was deflowered .
      Something about cornering the Market.

  2. drb1979MEMBER

    15,000 staff stood down?

    Does this rely on JobKeeper continuing, or will they be stood down with no pay and thus need to claim JobSeeker?

  3. ErmingtonPlumbingMEMBER

    How many of those 6000 are going to be forced to sell their Homes and investment properties over the next 6 to 12 mths?

  4. Just in case anyone (including workers about to get axed) is wondering where did all the qantas profits go;

    “ Since the second half of 2016, Qantas has bought back $1.9 billion in equity and paid out $873 million in dividends. Its latest dividend and buyback in september 2019 will add another $591 million in capital returns.“

    They have bought back 1/3 of its issued capital since 2015. More than any other ASX 200 company.