SYDNEY (AFP) ― Embattled Australian flag carrier Qantas said Monday it will axe 500 jobs in its heavy maintenance and engineering operations as part of a restructuring to help slash costs.

The move follows an 83 percent slump in first-half net profit in the six months to December and an announcement it would delay the delivery of two A380 superjumbos by three years as part of spending cuts.

In the reorganization, Qantas will cease heavy maintenance at Tullamarine in Melbourne by August, with work being consolidated in Avalon, another facility near the Victorian state capital, and Brisbane.

Of the 500 jobs cut, which were signaled in the profit announcement in February, 422 will be lost at Tullamarine, while 113 will go at Avalon. A total of 35 new positions will also be created.