Cathay Pacific announces 5,900 job cuts
Cathay Pacific Airways is the latest airline to go on a major cost-cutting exercise after it announced it will cut 5,900 jobs.
The Hong Kong carrier will also be ending its regional Cathay Dragon brand as it continues to grapple with the plunge in air travel demand due to the COVID-19 pandemic.
In total, 8,500 positions will be cut, or 24% of its normal headcount, although 2,600 of them are currently unfilled due to existing cost-cutting measures.
Cathay Pacific is also planning to make changes to the contracts of its cabin crew and pilots, with the total cost of restructuring set to cost HK$2.2 billion, the airline told the stock exchange.
“The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the group to survive,” Cathay chief executive Augustus Tang said in a statement.