Cathay Pacific to cut 600 jobs, including management staff

Cathay Pacific to cut 600 jobs, including management staff

HONG KONG: Hong Kong's flagship carrier Cathay Pacific Airways Ltd said on Monday (May 22) it will cut around 600 staff, including 190 management jobs and 400 non-management staff by mid-June.

Cathay Pacific said no frontline employees, pilots or cabin crew would be affected by the announcement,  but they would be asked "to deliver greater efficiencies and productivity improvements". 

In March, Cathay Pacific had said in an internal memo that it plans to cut the cost of middle and senior management roles at its Hong Kong head office by 30 per cent. The memo came a day after the airline reported its first annual loss since 2008.

"We have had to make tough but necessary decisions for the future of our business and our customers," said CEO Rupert Hogg.

"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."

The airline is also losing premium travellers as it comes under pressure from Middle East rivals that are expanding into Asia and offering more luxury touches.

Monday's announcement is the first since Hogg replaced Ivan Chu on May 1 as part of a management shake up.

Cathay shares rose 2.3 per cent in early trade Monday.

Source: Reuters/rw