Hong Kong media: Cathay Pacific will lay off 6000 employees and cut down the Cathay Pacific dragon brand

category:Finance
 Hong Kong media: Cathay Pacific will lay off 6000 employees and cut down the Cathay Pacific dragon brand


Screenshot of South China Morning Post

According to people familiar with the matter, the specific layoff plan may be announced on Wednesday (21), the number of about 6000 employees to be eliminated is nearly a quarter less than the original plan, and also lower than the current industry average (20% to 30%).

It is reported that Cathay Pacific originally planned to lay off about 8000 people worldwide, but after government intervention, the proportion of layoffs has dropped to about 18% of the companys total workforce, of which about 5000 will be laid off in Hong Kong.

People familiar with the situation also disclosed that due to the severe impact of the epidemic, Cathay Pacific Airways Hong Kong had to reorganize its flagship airline, Cathay Pacific Airways, so its regional brand and wholly-owned subsidiary Cathay Pacific dragon airlines would be cut off. Although Cathay Pacific dragon, which has more than 3000 employees, will be sacrificed, its staff and resources will be merged with Cathay Pacific.

Another person familiar with the matter said that the company will retain as many Cathay Pacific dragon pilots as possible, because most of them are specially trained locals and are regarded as talents of Hong Kong.

In addition, according to the Hong Kong Economic Daily on October 20, on the issue of whether to keep or abolish the dragon brand, Liang Peiyun, vice chairman of Cathay Pacific Dragonair aircrew Association, said on the same day that the trade union inquired about the layoff plan from the management, the management side said that it was only rumor that Cathay Pacific dragon still had value, but at the same time, the trade union hoped that there would be communication space between the labor and capital sides, but there was no active discussion between the management side Will.

Screenshot of Hong Kong Economic Daily

According to the South China Morning Post, Cathay Pacific currently has about 33000 employees worldwide, of whom about 26500 work for Cathay Pacific and Cathay dragon. Once they are laid off, their severance pay will be more generous than stipulated by labor laws and regulations.

According to the report, Cathay Pacific Airways of Hong Kong said on Monday (19) that compared with the level before the crisis, the transport capacity of the whole year next year will be less than half of that before the crisis, which highlights the slow pace of the industrys recovery. If the forecast is accurate, the recovery may not come until 2024.

Video capture of South China Morning Post: in early March this year, affected by the new crown epidemic, half of Cathay Pacific Airlines grounded half of its fleet, 75% of its employees took unpaid leave, and the planes on the apron had been grounded for at least 10 days. According to statistics, Cathay Pacific Airlines lost a record HK $9.87 billion (US $1.27 billion) in the first half of this year, and is still spending HK $2 billion a month. However, this figure has dropped from HK $3 billion at the beginning of the epidemic. At the same time, the report also stressed that if the epidemic is still not under control, it is still possible for Cathay Pacific to lay off staff again in the future. This article is the exclusive manuscript of the observer website. It is not allowed to reprint without authorization. Extended reading: Goldman Sachs again! Will pay more than $2 billion to the U.S. Department of justice to absolve Zhao Benshan, who once spoke for Huoxiang Zhengqi Kingdom king for 10 years, lost 2 billion yuan or trapped the eggshell apartment in troubled times: CEO Gao Jing is investigated, COO Gu Guodong leaves this article source: observer.com editor in charge: Zhong Qiming_ NF5619

According to statistics, Cathay Pacific Airlines lost a record HK $9.87 billion (US $1.27 billion) in the first half of this year, and is still spending HK $2 billion a month. However, this figure has dropped from HK $3 billion at the beginning of the epidemic.

This article is the exclusive manuscript of the observer website. It is not allowed to reprint without authorization.