Air New Zealand Reportedly Mulls Laying Off As Many As 100 Jobs To Cut Down Costs

Star Alliance member Air New Zealand is in the middle of a consultation with staff as it looks to shave up to 100 roles at the Auckland-based carrier. The airline’s Chief People Officer, Nikki Dines, commented to the New Zealand Herald, noting that only staff in particular parts of the business will be at risk as the airline considers role reductions. The changes proposed are rumored to be at the airline’s Fanshawe Street headquarters, which is located in the heart of Auckland’s Wynyard Quarter.

The airline’s HQ, known as “The Hub,” is located a stone’s throw from the central city, with leading bars, restaurants, hotels, and other high-profile businesses within proximity. The airline occupies the building, which is two connected six-level buildings. Air New Zealand moved many of its desk-bound staff to the premises in 2006, relinquishing leases at four other buildings around the CBD. Its former headquarters was based at Quay Tower.

An anonymous tipster to the New Zealand Herald has proclaimed that up to 100 roles are on the cutting block, and unionized members are affected. While the carrier has not confirmed these details, it is understood that the total number of redundancies will be ‘substantially less’ than what has been advised. With Dines noting:

“This is not an action we have taken lightly and acknowledge times like this will be unsettling for our team. Our focus is on supporting our people through this.”

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12,000 staff on the books already

According to the airline’s annual report for 2023, the books identified that the airline already had 12,000 staff, 1,364 of which were management positions. Two hundred managers are already being paid between NZ $200,000 ($122,000) and NZ $500,000 ($306,000) annually. Twenty-one managers are reaping the benefits of a salary exceeding NZ $500,000 ($306,000).

This comes in the path of the carrier downgrading its profit outlook for the financial year, citing expected earnings before tax to achieve a range of NZ $200,000 ($122,000) to NZ $240,000 ($147,000), with a critical factor in the downgrade in finances due to softening demand and increased competition on routes between New Zealand and North America, and a weakened domestic market.

Photo: Air New Zealand

Simultaneously, however, the airline continues to claw back its market share trans-Tasman. While it doesn’t operate at the highest capacity, it operates to more Australian ports than any other carrier in the region. The carrier serves nine Australian ports from Auckland International Airport (AKL), with the Sunshine Coast recently relaunched for the southern hemisphere winter period. Hobart, in Tasmania, is also set to return in October, while Seoul, South Korea, will resume after a short pause this year, re-connecting New Zealand to South Korea.

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Times are tough for many in Aotearoa.

New Zealand is currently in the grips of a cost-of-living crisis and has recorded its second GDP recession in the last few months. Many residents are battening down the hatches and watching their spending as they adjust to high interest rates, expensive grocery bills, and a tightening labor market. The country’s new government has introduced a strew of cost cuts, with public servants bearing the brunt of widespread redundancies. Ironically, the country’s new Prime Minister, Christopher Luxon, used to be the CEO of that nation’s flag carrier.

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