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Australian airline Qantas announced on Thursday that it would slash 5,000 jobs as part of its actions to reduce 2 billion AU dollars (1.8 billion U.S. dollars) in costs over the next three years.
"More than 50 aircraft will be deferred or sold and the Group's workforce will be reduced by 5,000 full-time equivalent positions by FY17 (financial year 2017)," Qantas said in a statement.
Over the next three years, the airline will reduce 1,500 management and non-operational roles and 3,500 positions will go as a result of changes to the fleet and network, the restructure of maintenance operations and the restructure of catering facilities, the statement said.
The struggling airline on Thursday posted an underlying loss before tax of 252 million AU dollars (225 million U.S. dollars) and a statutory loss after tax of 235 million AU dollars (210 million U.S. dollars) for the six months ended December 31, 2013.
Qantas Chief Executive Officer Alan Joyce said the result was unacceptable and comprehensive action would be taken in response.
"We are facing some of the toughest conditions Qantas has even seen," Joyce said in a statement on Thursday.
"Qantas has been undertaking its biggest ever transformation over the past four years, cutting comparable unit costs by 19 percent over four years, but this is not enough for the circumstances we face now," he said.
Joyce said the company must take actions that are unprecedented in scope and depth to strengthen the core of its business.
"We will accelerate our Qantas transformation program to achieve 2 billion AU dollars in cost reductions by FY 17. Hard decisions will be necessary to overcome the challenges we face and build a stronger business," he added.
