Investor Presentaiton
Organisational restructure, workforce reduction and supplier review
Strategic transformation and cost initiatives remain on track, with financial benefits expected to materialise
Virgin
australia
group
ORGANISATIONAL RESTRUCTURE + WORKFORCE REDUCTION
For personal use only
SUPPLIER REVIEW
New structure introducing Group accountability and reducing duplication
Workforce reduction program to remove 750 roles
Targeting annualised cost savings of $75 million
On track for 400 roles exited by 31 March 2020, with 750 by year end
Significant pipeline of activity underway to optimise supply chain and renegotiate
arrangements with key suppliers
Long-term legacy contracts containing unfavourable terms proving challenging
Group is reviewing agreements with catering and engineering providers and aviation
technology providers to realise better commercial outcomes
• Significant savings being realised in the areas of fuel, accommodation and marketing
services
On track for annualised savings of $30 million by 31 March 2020, and $50 million by
year end
Virgin Australia Group results H1 FY20 | 9View entire presentation