Virgin Australia set to lose 750 jobs

Company News

by Rachael Jones

Virgin Australia (ASX:VAH) is set to lose 750 corporate and head office roles, representing $75.0 million in cost savings by the end of Financial Year 2020.

The move comes as the group reports underlying loss before tax of $71.2 million, reflecting the impact of adverse H2 FY19 market conditions, new route investments, and $158.8 million in fuel and foreign exchange headwinds

Job losses represent about 7.5 per cent of its total workforce, and close to a third of all corporate roles.

Virgin Australia Group Chief Executive Officer and Managing Director, Paul Scurrah, said today’s results were disappointing and underscored the need for change.

Shares in Virgin Australia (ASX:VAH) are trading 9.1 per cent lower at 15 cents.
 

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.