- More Virgin jobs are on the chopping block as the airline continues to trudge out of its COVID-19-induced slump
- In addition to the 3000 job cuts announced last month, Virgin is set to axe up to 250 head office jobs and 150 corporate positions
- This is all part of the company’s simplification and restructuring process as it gears up to come out of administration under new owner Bain Capital
- In a letter to employees, CEO Paul Scurrah said the company is navigating its way out of the worst crisis the aviation industry has ever seen
- He said the company is redesigning its head office to suit its smaller operations, meaning it’s inevitable some jobs will have to go
More Virgin jobs are on the chopping block as the airline continues to trudge out of its COVID-19-induced slump.
The beleaguered airline is likely to make up to 250 head office jobs redundant, according to a letter from CEO Paul Scurrah reported on by The Australian.
In the letter, Paul said Virgin is “in the midst of the worst crisis” the aviation industry has ever faced, and as such cash management is absolutely critical.
These job cuts are all part of the company’s simplification and restructuring process as it gears up to come out of voluntary administration.
Soon after the crashing airline was saved by U.S. investment firm Bain Capital in a $3.5 billion takeover, the company announced plans to axe 3000 jobs — roughly a third of its workforce.
Last week, Virgin’s Tigerair business officially closed down after 13 years of service. At the same time, Virgin announced it would be slashing some regional flights for the “foreseeable future”.
Now, more jobs are set to be axed.
“One of our largest costs is labour, and with much less transitionary work required as the administration process is coming to an end and without the revenue coming through the door, we simply cannot justify the number of team members who are currently stood up,” Paul’s letter to employees said.
However, the job cuts are not necessarily permanent; Paul said staff who had been stood down would likely stay so until March next year, but the situation will be reviewed in January.
“Consultation will occur immediately for roles which are identified as no longer being required as a result of the smaller operation and reduced work,” Paul wrote.
He said on top of the 250 head office roles, the company expects around 150 corporate jobs to be lost.
The company is redesigning its head office to suit its smaller operations, meaning it’s inevitable some jobs will have to go.
“I’m aware that for many of you it will feel like we have already done this … last year. However, the world and our business have significantly changed since then which must be addressed,” Paul’s letter said.
Under Bain’s management, Virgin will be moving to an all-Boeing 737 mainline fleet. This means the company is completely ditching its ATR, Boeing 777, Airbus A330, and, of course, Tigerair Airbus A320 aircraft.
The regional flight routes canned last week include flights from Sydney to Albury, Uluru, and Hervey Bay, and from Melbourne to Mildura and Brisbane to Cloncurry. The company is also stopping its international flight service from Sydney to Tonga.