Austrian Airlines Group has announced plans to cut a quarter of its Innsbruck-based Tyrolean Airways workforce as it consolidates its administrative functions in Vienna.

Last July Austrian Airlines Group transferred all flight operations to its wholly owned regional subsidiary Tyrolean Airways as part of a €220 million ($278.5 million) cost-cutting plan.

“We have to concentrate our scarce administrative resources at our Vienna hub if we are to become even more effective,” Tyrolean Airways MD Klaus Froese said, detailing plans to cut around 100 of the 400 remaining Tyrolean jobs in Innsbruck.

Functions such as crew and traffic management will be shifted to Vienna, but Tyrolean’s aircraft maintenance and call center will remain at Innsbruck. The Innsbruck-based staff will be offered the option of relocating to Vienna or they will be compensated if they are unable or unwilling to move.

“The decision by the Tyrolean management is both courageous and painful at once. After just a few weeks of intense analysis, Klaus Froese has extended the original concept,” Austrian Airlines CEO Jaan Albrecht said, noting that the changes should be finalized within a year.