As a result of the COVID-19 pandemic, Cathay Pacific has announced a corporate restructuring which will see a net job loss of approximately 5,900 employees and the axing of its wholly owned regional subsidiary, Cathay Dragon. The Group will be looking to obtain regulatory approval for Cathay Pacific and its other wholly owned subsidiary HK Express to operate the routes formerly covered by Cathay Dragon.
Approximately 5,300 employees will be made redundant in Hong Kong, while a further 600 jobs will go from outside Hong Kong. In total approximately 8,500 positions will go from the Group, roughly 24% of the workforce, though a recruitment freeze and natural attrition will see the number of forced redundancies drop to 5,900. Additionally, Hong Kong-based cabin and cockpit crew members of Cathay Pacific will be asked to agree to changes in their conditions of service which are designed to match remuneration more closely to productivity and to enhance market competitiveness.
Executive pay cuts will continue throughout 2021 and a third voluntary Special Leave Scheme for non-flying employees will be introduced for the first half of next year. There will be no salary increases for 2021 nor the payment of the annual discretionary bonus for 2020 across the board for all employees.
Cathay Pacific Chief Executive Officer Augustus Tang said: “The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the Group to survive. We have to do this to protect as many jobs as possible and meet our responsibilities to the Hong Kong aviation hub and our customers. “Our immediate priority is to support those affected by today's announcement. We are deeply saddened to part ways with our talented and respected colleagues, and I want to thank them for their hard work, achievements and dedication.”
