Hong Kong's Cathay Pacific Group Axes 8,500 Posts Amid Pandemic

Oct. 21-- HONG KONG -- Hong Kong's Cathay Pacific Group announced on Wednesday it would be cutting 8,500 positions in an effort to save its airline businesses and will immediately cease operations of its regional subsidiary Cathay Dragon.

Some 5,900 jobs are to be cut directly, while 2,600 currently open positions will not be filled, ultimately reducing the workforce by nearly a quarter.

As part of a restructuring plan, which the group says it must undergo as a result of the coronavirus pandemic, Cathay Pacific will freeze in recruitment, and up to 5,300 Hong Kong based employees will be face redundancy.

The group will aim to leverage the potential of its low-cost carrier, HK Express.

Cathay's Chief Executive Augustus Tang said the group had taken every possible action to avoid job losses, but in spite of efforts had lost 1.5-2 billion Hong Kong dollars (190 million -- 258 million dollars).

In the statement, Tang said the drastic measures announced Wednesday would save the airline 500 million Hong Kong dollars per month.

"The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the Group to survive," Tang said.

Cathay Pacific says it remains confident in the business' long-term future but expect to operate well under 25 per cent of 2019 passenger capacity in the first half of 2021 and below 50 per cent for the entire year.

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