Budget airline Easyjet has axed 10 per cent of the staff at its management and administration unit as it moves to cut costs and increase revenues per passenger.

The job cuts were spearheaded by Ray Webster, easyJet's departing chief executive, and pushed through last Thursday and Friday.

The airline told staff of the cuts at the end of a week when it reported pre-tax profits of £67.9 million for the year.

According to an internal memo circulated by Mr Webster and seen by Times Online, about 50 of the unit's 500-strong staff - which are not involved in flying easyJet planes - lost their jobs in the cull.

In a move that it is said "hasn't gone down well with staff", the cuts are likely to be one of the last strategic initiatives undertaken by Mr Webster before he gives way to Andrew Harrison at the beginning of next month.

In the memo, Mr Webster concedes that the full-year profits - against a backdrop of high oil prices and fierce competition - are "not enough to make us successful in the long run".

He compares easyJet's profits of about £1.70 per seat in the most recent financial year with those of arch-rival Ryanair, which made profits of £5.80 per seat.

As he stressed that easyJet needs to "make more profit" and attract the long-term investment from shareholders that "is necessary to survive and grow", Mr Webster told staff that the airline wants to cut "headcount-related costs" by about 10 per cent.

"Between now and the end of December we will be creating some new roles, combining some roles and removing others. This includes a reduction in our reliance on temporary and consultancy labour," Mr Webster said.

"I regret to say that we anticipate that a number of roles will be at risk of redundancy over this period. We will be endeavouring to find suitable alternatives for employees who are affected - but if none can be found, some people will leave the company.

"I expect that this will be no more than 50 people. We will provide all the necessary help and guidance for employees, including a dedicated professional service."

It is thought that the cuts - including sales and marketing staff, and IT and call centre workers - will be enough to meet the airline's staff reduction target.

A spokesman for easyJet confirmed the contents of the memo but declined to comment further.

EasyJet's share price (up 3.75p at 333.25) values the airline at more than £1.3 billion.

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