IT suppliers under pressure to lower costs.
At the release of its six-monthly results to December 2013, Qantas announced the program had been accelerated and the number of job cuts lifted to 5000, to be implemented by June next year.
Around 1500 of those would come from management and “non-operational” areas – such as its IT division.
At last count Qantas’ IT team sat at around 250.
Qantas will implement 250 initiatives to meet this goal – including, it announced today, rationalising its software applications.
It also reaffirmed plans to renegotiate supplier arrangements with its top 100 suppliers, as first announced in December.
Qantas outsources up to 80 percent of its IT operations. The airline outsources management of its IT infrastructure to IBM, its passenger management software to Amadeus, application management to TCS and Mahindra Satyam and end-user computing to Fujitsu.
In its financial results today, Qantas confirmed that each of these contracts will be subject to the review.
Qantas CEO Alan Joyce said the announcement was a result of some of the “toughest conditions Qantas has ever seen”.