Cathay Pacific Airways will eliminate 8,500 job posts, declaring 5,900 staff redundant globally, and shut one of the regional airlines in a global HK $2.2 billion or US$284 restructuring shake-up cost, according to South China Morning Post. The restructuring will occur with immediate effect as the company focuses on coping with the pandemic fallout.
- Cathay “optimistically” expects a gutted flying schedule for the next eight months.
- Of the 8,500 job posts, 5,300 to be in Hong Kong, and another 2,600 are unfilled roles.
- Cathay Dragon brand will cease to operate with immediate effect.
- Job cuts and airline closure will reduce the HK$2 billion monthly cash burn by HK$500 million per month.
- Hong Kong-based cabin and cockpit crew to sign new, cheaper contracts.
- Cathay Pacific will scrap salary increases in 2021 and not pay discretionary bonus this year, and extend unpaid leave for non-flying staff.
Cathay Pacific stock rose 3.5% on stock market opening following job cuts announcement. 0293: HKG is up 2.27%.
