PPRuNe Forums - View Single Post - Virgin headed for another disaster, says REX chairman
Old 9th May 2020, 06:49
  #66 (permalink)  
Join Date: May 2016
Location: Sunshine Coast
Posts: 171
Originally Posted by wheels_down View Post
PS has pulled back what 20% of the workforce since he started?
No, not even close. His lack of traction on that front has been just one of his signature failures.

In August last year he announced 750 jobs were going to be cut as part of a rightsizing. On the basis that he'd been there for five months at that stage most people thought that he'd have the 750 names in his back pocket or at the very least be well advanced in planning. In a 7 November 2019 piece in the SMH it was reported that most of the 750 headcount reduction would be completed by Christmas.

Depending on who you listen to, as of 1 January this year either just 140 of the mooted 750 had gone or none had gone but there were plans to cut 400 jobs by the end of March with another 350 to go by the end of June. So, much talking, little planning, less cutting.

If you turn to the FY20-H1 interim report delivered in late February, subsequent to announcing the 750 'rightsizing' employee costs went up by $42 million (6.3 percent). After you allow for redundancy payments for the 140 that were meant to have been exited, the Schuster bonus and EBA escalators, there's still $10 million in additional employee costs that is unaccounted for. That seems to suggest that they added headcount. There was no hiring freeze in place prior to the COVID-19 crisis biting.

Subsequent to the coronavirus crisis emerging they've apparently made 1,000 people redundant, likely some of the 750 plus the Tiger and NZ-based staff. That seems to gel with the headcount numbers that Deloitte is bandying around (9,020 employees). So, all up pre- and post-crisis they've managed to reduce headcount by about 10 percent with the vast majority of that reduction occurring post-crisis.

Originally Posted by wheels_down View Post
HQ will likely move to Sydney so expect another 10-20% who won’t commit.
I wouldn't be too sure about head office moving but, in any event, just how many people do you think are employed in the Village? My understanding is that there's only about 1,000 people there.

Originally Posted by wheels_down View Post
What Fuel price is that figure based on?
Yeah, good question. Just back of the napkin it has to be something like $US50 a barrel.

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