Cathay Pacific announced 8500 job cuts due to corporate restructuring

 Cathay Pacific announced 8500 job cuts due to corporate restructuring

The main contents of enterprise reorganization include: u00b7

About 8500 jobs will be cut across the group, equivalent to about 24% of the total number of jobs in the group. The group has reduced the actual staff reduction to about 5900 (about 17% of the total number of positions in the group) through the recruitment freeze and natural staff turnover. This includes about 5300 resident staff and about 600 non resident staff may also be affected, depending on the regulatory requirements of the region concerned. Qualification

Cathay Pacific Dragonair, a wholly owned subsidiary of the group, will immediately cease operations. The Group intends to seek regulatory approval for Cathay Pacific and its wholly-owned subsidiary, Hong Kong Express, to operate most of the routes of Cathay Pacific Dragonair. Qualification

Cathay Pacific will require cabin attendants and pilots in Hong Kong to agree to change their conditions of service in order to achieve the objectives including making remuneration closer to productivity and enhancing market competitiveness. Qualification

The company will continue to implement the current senior management salary reduction arrangement throughout 2021, and launch the third round of voluntary special leave plan to non crew members in the first half of next year. All employees will not receive any salary increase in 2021 and no discretionary year-end bonus in 2020.

Deng Jianrong, chief executive officer of Cathay Pacific, said: the epidemic has swept the world and has continued to bring a heavy blow to the aviation industry. We must carry out a fundamental restructuring, otherwise the group will not be able to continue to operate in the end. Only in this way can we do our best to retain the most jobs and fulfill our responsibilities to the Hong Kong aviation hub and customers.

The first priority is to provide support to all staff affected by todays announcement. Many of our outstanding colleagues and we feel sad to say goodbye. I sincerely thank them for their efforts and contributions to the group in the past.

Cathay Pacific will provide employees who are affected with exit plans far higher than the statutory requirements. The company will also extend the duration of medical benefits and air tickets, and provide counseling and transitional support services. The severance payment will not be hedged against pension contributions.

Despite our efforts, Cathay Pacific still consumes HK $1.5 billion to HK $2 billion in cash every month, which will be unsustainable in the long run. The changes announced today will reduce our cash consumption by about HK $500 million per month.

We have carefully analyzed a number of possible scenarios and have finally decided to adopt the most responsible option in order to retain as many jobs as possible. Nevertheless, it is clear that the pace of market recovery will be quite slow. The company expects that the passenger transport capacity in the first half of 2021 will still be far lower than 25% in 2019, while the passenger transport capacity of the whole year in 2021 will be less than 50%.

As for Cathay Pacific Dragonair, Deng Jianrong said: in the past 35 years, with the efforts of its excellent team, Cathay Pacific Dragonair has won the high reputation deserved by its excellent service and hospitality.

Although our current situation is very difficult, the group has incomparable resilience, and Cathay Pacific is also a Hong Kong brand that we are proud of. I have full confidence in the restructuring plan and am confident that we will be able to tide over the difficulties. We are absolutely confident in the long-term prospects of Cathay Pacific and Hong Kong as aviation hubs, as well as the important role of Hong Kong in the Greater Bay area and beyond.

(function(){( window.slotbydup=window .slotbydup||[]).push({id:u5811557,container:ssp_ 5811557, async:true }Source: Cathay Pacific Airlines editor in charge: Yao Wenguang_ NN1682