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Qantas to cut up to 2,500 jobs as it outsources ground handling

Qantas to cut up to 2,500 jobs as it outsources ground handling

FILE PHOTO: Workers are seen near Qantas Airways, Australia's national carrier, Boeing 737-800 aircraft on the tarmac at Adelaide Airport, Australia, August 22, 2018. REUTERS/David Gray

SYDNEY: Qantas Airways Ltd said on Tuesday (Aug 25) that it planned to cut up to 2,500 jobs by outsourcing its Australian ground handling operations to lower costs as it braces for a A$10 billion (US$7.17 billion) hit to revenue due to the pandemic this financial year.

The expected job cuts are on top of 6,000 across its workforce announced in June, which would take the total job losses to nearly 30 per cent of its pre-pandemic roles.

READ: Australia's Qantas posts US$1.9 billion loss, confirms job cuts

Qantas Domestic Chief Executive Officer Andrew David said outsourcing the ground handling jobs would save an estimated A$100 million a year in operating costs.

It would also allow the airline to avoid investing A$100 million in equipment like tugs and bag loaders over the next five years, Jetstar Chief Executive Gareth Evans said.

Source: Reuters/ga

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