Cathay Pacific will lose 24 percent of its workforce following the job cuts.
PHOTO BY ARCHIVE
HONG KONG – Cathay Pacific Airways announced on Wednesday (October 21) it will lay off 5,900 employees amid a dip in travel demand due to the coronavirus pandemic.
The Hong Kong carrier said it will cut 5,300 jobs in Hong Kong and close its Cathay Dragon unit. The airline will also cut 600 jobs globally and eliminate 2,600 unfilled positions.
The airline will lose 24 percent of its workforce following the job cuts.
“The future remains highly uncertain and it is clear that recovery is slow,” according to Cathay Pacific in a statement.
“The management team has concluded that the most optimistic scenario it can responsibly adopt is one in which, for the year 2021, the company will be operating at well under 50 per cent of the passenger capacity it operated in 2019,” it added.
Cathay Pacific has reported monthly losses of $65 million since the pandemic started.
Earlier this year, Cathay Pacific introduced an unpaid leave programme for staff and also cut salaries in an effort to control the cash outflow.
“We have taken every possible action to avoid job losses up to this point,” Augustus Tang, chief executive officer of Cathay, said in a separate statement. “The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the group to survive.” ICA/Expat Media
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