Cathay Pacific eliminates 8,500 jobs and closes its subsidiary Cathay Dragon.
Cathay Pacific Group has announced a corporate restructuring in response to the impact of the Covid-19 pandemic on the aviation market that will result in the elimination of 8,500 jobs and the closure of its subsidiary Cathay Dragon, EuropaPress review.
See also: Cathay Pacific to operate less than 50% of capacity in 2021.
The company claims that the restructuring will enable the company to secure its future, while meeting its responsibilities to the Hong Kong aviation center and its customers.
The group assures that it will create a “more focused, efficient and competitive” business. It will do so by leveraging the strengths of Cathay Pacific, as well as the potential of its low-cost airline, HK Express.
See also: Vietnam suspends the reopening international commercial flights.
To do so, approximately 8,500 positions will be reduced in the whole group, which means 24% of its staff. The cuts will affect 5,300 employees in Hong Kong, where the company is based. Some 600 workers outside the Asian financial center will also be affected, Cathay said in a statement.
The company also wants to eliminate additional jobs that remain unfilled, either through a hiring freeze or natural attrition.
Cathay Dragon, the Group’s wholly owned regional subsidiary, will cease operations with immediate effect.
In addition, cabin and flight crew members of Cathay Pacific based in Hong Kong will be asked to accept changes in their conditions of service designed to align pay more closely with productivity and improve market competitiveness.
Executive pay cuts will continue through 2021 and a third voluntary Special Leave Plan will be introduced for non-travelers during the first half of next year.
There will be no salary increases by 2021 and the payment of the annual discretionary bonus by 2020 in all areas for all employees.
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