Cathay Pacific today announced that it will be
making around 600 people redundant.
The changes will affect
senior, middle management and non-managerial roles at the group’s
headquarters in Hong Kong.
Around 190 management and 400
non-managerial roles will go, representing 25% of management and
18% of non-managerial positions respectively.
The airline has said that the majority of affected employees will be
informed of changes or a cessation to their role today and over
the next month, with most of the restructuring expected to be completed by the
end of 2017.
Rupert Hogg (pictured), Chief Executive
Officer, Cathay Pacific, said: “We greatly appreciate and respect
our people’s dedication, hard work and achievements. However, we
have had to make tough but necessary decisions for the future of
our business and our customers. 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. Our immediate priority is to support our
colleagues affected by today’s announcement, and I’d like to thank
them for all they’ve done for Cathay Pacific. As we look
to the future we will have a new structure that will make us
leaner, faster and more responsive to our customers’ needs. It is
the first step in the transformation of our business. We want to
invest in and improve the experience that we offer people in Hong
Kong and around the world, to find new ways to give our customers
what they really want and need.”
All employees whose roles
will become redundant in the new structure will receive a
severance package including up to 12 months’ salary, extended
medical benefits including counselling and support, and additional
and extended travel benefits.
Cathay Pacific will also offer all
outgoing employees job search support, job application support and
To align with the head office
reorganisation, Cathay Pacific will also restructure its cargo
department. It will streamline the structure by removing the role
of Cargo Director. The commercial and planning functions will
report into the Director Commercial and Cargo, and be overseen by
the Chief Customer and Commercial Officer. The services function
will report into the Director Service Delivery.
Tony Fernandes (AirAsia) and Gary Chapman (Emirates) Talk Aviation
@ WTTC Global Summit 2017 - HD Video.
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