The Qantas Group is making 90 senior managers redundant as part of a structural review in the face of the current global economic crisis. The company will also maintain a salary freeze and introduce a number of role changes for remaining managers. Qantas chief executive, Alan Joyce, said: "It is clear that the aviation sector faces considerable commercial challenges for the foreseeable future. Qantas must respond decisively to what is happening, and our response must begin with those of us who lead the company."
He added that the organisational changes to management would result in a "leaner, more fast-moving organisation". Joyce continued: "We will be moving to a structure that reduces the numbers and layers of management in Qantas. This means a number of managers will be leaving the company. The ongoing management team are being asked to take on new tasks and we are asking every manager to work with his or her team to achieve more operational efficiency in coming months. The ability to make hard changes earlier than others distinguishes Qantas from its competitors. We confront challenges when they need to be confronted. Doing so has helped the Qantas Group survive and prosper."
Qantas last month announced that its first half pre-tax profit had plunged by 68.2% year-on-year to A$288m. However, at the same time the group reiterated its guidance of FY08/09 pre-tax profit of about A$500m, "subject to no further significant change in market conditions and fuel prices".