Qantas job cuts could increase from 3,000 to 5,000

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With its main aim to reduce expenditure by $2billion in the next financial year, Australian airline Qantas look like making even more drastic budget cuts than first suggested, when it announces these this Thursday.

Where job loss estimates were initially around the 3,000 mark, it is now looking as though more than 5,000 employees will actually lose their positions with the company – a total of about 15% of its workforce.

Also on Thursday, the airline will announce the grounding of 15 of its Boeing 767-300ER fleet, drastically reducing service runs, and therefore likely to lead to a major increase in flight fares.

It is reported that Qantas’ cost-cutting tactics are looking similar to those of its alliance partner American Airlines, who went through similar bankruptcy protection methods in 2011. The US airline was able to cut costs – mainly staff ones – by 17 per cent, and is now enjoying solid profits.

Only time will tell if the red kangaroo could be so lucky. Meanwhile, there’s sure to be a lot of tears for some 5,000 ex-staff.