News : Fairfax, Virgin Look to Outsource Finance Teams
Brisbane, Australia, April 28, 2015 -- Offshoring plans under consideration at Virgin Australia and Fairfax Media could affect up to 250 finance and accounting jobs within the two companies.
Fairfax' cost-cutting measures could affect 150 staff.
Virgin's bid for more flexibility to support growth will impact less than 100 staff if the airline decides to execute on its plans.
Virgin is weighing up the merits of outsourcing some back office functions in Brisbane to a third party provider.
The airline has experienced rapid growth from a low cost carrier to a full service provider in recent years, forcing it to consider the best mechanisms to support future growth.
Fairfax Media has been exploring the possibility of outsourcing its finance functions, including accounts payable, accounts receivable, reconciliation, general ledger and subscription management, since 2012.
A Fairfax Media spokesperson said "no final decisions have been made".
"Staff are well aware of where we're up to in our thinking," a Fairfax Media spokesperson said.
"We will keep our people informed of any changes to current arrangements."
The airline has stressed that any review of operations is not motivated by a desire to reduce headcount. Virgin has actually bought some functions back in-house, including ground operations, maintenance and its call centre.
Posted by Veronica Silva Cusi, news correspondent
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More Editorial From Virgin Mobile Australia
About Virgin Mobile Australia:
Virgin Mobile launched its operations as a mobile virtual network operator (MVNO) in November 1999. Virgin Mobile offers a broad range of mobile communications products and services, including mobile voice and non-voice services, including SMS, MMS and 3G, and entertainment services over the Virgin Mobile Bites portal including games, information and music services, and international roaming.
About Fairfax Media:
Fairfax Media Limited is one of Australia's largest diversified media companies. The group's operations include newspapers, magazines, radio and digital media operating in Australia and New Zealand.
Published: Wednesday, April 29, 2015