Virgin Australia to cut 750 jobs after making a massive $315million loss
Virgin Australia will cut 750 jobs after losing $315million after tax this year.
The country’s second-largest airline swung to an annual underlying loss due to higher fuel costs and a weaker currency.
It reported an underlying pretax loss, its most closely watched measure, of A$71.2million for the year ended June 30, compared with a A$64.4million profit last year.
Virgin Australia will cut 750 jobs after losing $315million this year
Virgin in May provided guidance for an underlying loss before tax of at least A$35.6million.
The company also said it is targeting a reduction of 750 corporate and head office roles.
It expects A$75million in cost savings from the move by the end of fiscal 2020.
Chief executive Paul Scurrah blamed ‘subdued trading conditions in the second half of the year combined with fuel and foreign exchange headwinds and increased operational costs.’
He said job cuts were difficult but necessary to return to profitability.
‘If we are to position the business for the future, create new opportunities, improve competitiveness, and continue to deliver for our customers, we need to make tough but important decisions that are in the long term interests of the group,’ Mr Scurrah said.
‘Key to our success is ensuring we strike the right balance between the interests of our team members, customers and our shareholders. We’ll be focused on delivering for all three groups.’