Air New Zealand is currently discussing potential job cuts with its corporate staff. The company’s main focus during these challenging times is to support its employees.
Nikki Dines, the airline’s chief people officer, has stated that the proposed changes will not be widespread but will target specific areas of the business.
However, it’s important to be aware that the jobs most at risk are those at the company’s Fanshawe St headquarters in central Auckland.
In a recent cost-cutting initiative, Mat Bolland, the chief corporate affairs officer, left the company last month as part of a broader review of the airline’s expenses.
Bolland joined Air New Zealand in May 2021 and played a critical role in helping the airline navigate its recovery from the impact of COVID-19.
In April, the airline downgraded its profit outlook for the financial year by up to $50 million and announced earnings before tax in the range of $200 million to $240 million in February.
However, the airline has since experienced a decline in revenue, both domestically and in the North American market, during the fourth quarter.
Due to the softer revenue conditions, Air New Zealand is anticipating a lower underlying profitability of approximately $40 million to $50 million for the 2024 financial year. It’s worth noting that in 2020, the airline had to make tough decisions, including job cuts for about a third of its 12,000-strong workforce, in a bid to survive. This context can help us understand the company’s approach to similar situations.
