Cathay Pacific said it will lay off 600 people in its head office as part of a “transformation program” to achieve efficiencies for Cathay Pacific and Cathay Dragon Air.
The changes will affect senior, middle management and non-managerial roles at the company’s headquarters in Hong Kong, the company said in a press release.
About 190 management and 400 non-managerial jobs will be slashed, representing 25 percent of management and 18 percent of non-managerial positions, respectively.
Affected employees will be notified today and over the next month. Most of the restructuring will be completed by the end of 2017, the company said.
No frontline employees, pilots or cabin crew will be affected.
“We greatly appreciate and respect our people’s dedication, hard work and achievements. However, he have had to make tough but necessary decisions for the future of our business and our customers,” Cathay Pacific chief executive Robert Hogg said.
“Changes in people’s travel habits and what they expect from us, evolving competition and challenging business outlook have created the need for significant change,” he said.
All affected employees will receive severance package including up to 12 months’ salary, extended medical benefits including counselling and support, and additional and extended travel benefits.
The company will also offer redundant employees job search support and interview training.
Cathay Pacific said it will also restructure its cargo department by removing the role of cargo director.
The commercial and planning functions will fall under the director for commercial and cargo and be overseen by the chief customer and commercial officer.
The services function will fall under the director for service delivery.
– Contact us at [email protected]