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Cathay Pacific to Cut Workforce by Nearly a Quarter

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Key Points

  • Cathay Pacific announced plans Wednesday to cut its workforce by nearly a quarter and close one of its short-haul airlines in an effort to survive the “devastating” impacts of the coronavirus pandemic.
  • Cathay said 5,300 redundancies would be made among the airline’s Hong Kong-based employees with a further 600 overseas.
  • The news of cuts was embraced by investors, with Cathay’s battered shares trading four percent up in afternoon trade.
  • Visit The Financial Today’s homepage for more stories.

HONG KONG — Cathay Pacific announced plans Wednesday to cut its workforce by nearly a quarter and close one of its short-haul airlines in an effort to survive the “devastating” impacts of the coronavirus pandemic.

Across the globe, airlines have been hammered as the pandemic has slashed international travel, and they face a long, hard winter after a much-hoped-for rebound failed to materialize.

Cathay Pacific, Hong Kong’s flag carrier, published a corporate restructuring plan on Wednesday that will lead to 8,500 job losses in total—nearly a quarter of its workforce—and one of its airlines to disappear completely.

“The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the Group to survive,” CEO Augustus Tang said in a statement.

Cathay said 5,300 redundancies would be made among the airline’s Hong Kong-based employees with a further 600 overseas.

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