Cathay Pacific To Cut 600 Jobs

Cathay Pacific Airways has announced plans to make about 600 people based at its head office in Hong Kong redundant.

The SAR full service carrier said about 190 management and 400 non-managerial roles will go as part of a transformation to make the airline more effective.

The cuts represent 25 percent of management jobs and 18 percent of non-managerial positions. Cathay said no front line employees will be going as the airline is still in growth mode. Most of the restructuring will be completed by the end of the year.

“We have had to make tough but necessary decisions for the future of our business and our customers,” Cathay’s chief executive Rupert Hogg said. “Changes in people’s travel habits and what they expect from us, evolving competition and a challenging business outlook have created the need for significant change.”

He said the restructuring “will make us leaner, faster and more responsive to our customers’ needs. It is the first step in the transformation of our business.”

Hogg became CEO at the beginning of the month, replacing Ivan Chu, after Cathay made a net loss of HKD$575 million (USD$74 million) in 2016, from a HKD$6 billion profit the previous year. The airline blamed intense competition as the biggest drag on performance.

Settlement arrangements for redundant staff include up to 12 months salary, plus extended medical benefits, and additional and extended travel benefits, the airline said.

Cathay Pacific had over 33,000 staff prior to the redundancies.