CIPS News

Source: The Australian Qantas will slash 500 jobs as part of a major revamp including slashing capital expenditure, after the airline reported an 83 per cent fall in its first-half net profit. Chief executive Alan Joyce announced the cuts as part of changes to its engineering and catering services to deal with uncertain times in the aviation industry. "We anticipate there will be 500 positions affected by the immediate changes that we have announced today,'' Joyce said. The airline said it will slash capital expenditure by $200 million in the 2011/12 financial year, and cut $500 million from spending in 2012/13. CIPS Australasia Managing Director Jonathan Dutton FCIPS said it is always disappointing to see redundancies in Australia. “Redundancies are rarely the answer for lasting savings. However, savings are always available within the supply chain, as Qantas have realised,” Dutton said. “Investing in professional procurement and supply chain management offers real total cost reductions, lower risk profiles and offers an instrument for corporate policy,” he said. Read more here. http://www.theaustralian.com.au/business/