The cuts are about 24% of the organization’s labor force
Hong Kong aircraft Cathay Pacific Airways said Wednesday it would eliminate 8,500 positions and shut a provincial carrier as it wrestles with the dive in air make a trip because of the pandemic.
Around 5,300 representatives situated in Hong Kong and another 600 somewhere else will probably lose their positions, and 2,600 unfilled positions will be cut. The cuts are about 24% of the organization’s labor force, Cathay Pacific said in an announcement.
The organization will likewise close down Cathay Dragon, its local carrier unit, with activities stopping Wednesday. It will look for administrative endorsement for the greater part of the courses to be worked by Cathay Pacific and its spending aircrafts auxiliary HK Express.
The rebuilding is pointed toward diminishing Cathay Pacific’s money consume to 500 million Hong Kong dollars ($64.5 million) a month, from about 1.5 billion Hong Kong dollars ($193.5 million) to 2 billion Hong Kong ($258 million) dollars as of now, Cathay Pacific CEO Augustus Tang said in an announcement.
“The worldwide pandemic keeps on devastatingly affecting flying and the hard truth is we should generally rebuild the Group to endure,” Tang said.
“We need to do this to ensure however many positions as could be allowed, and meet our duties to the Hong Kong aeronautics center and our clients.”
The rebuilding plan will cost about 2.2 billion Hong Kong dollars ($283.8 million), the organization said.
Leader pay cuts will likewise proceed all through 2021 and there will be no compensation increases for 2021 nor rewards during the current year for all Hong Kong representatives, Cathay Pacific said.
Ground staff will likewise be offered an intentional leave plan in the primary portion of one year from now.
In June, Cathay Pacific raised 39 billion Hong Kong dollars ($5 billion) in a recapitalization plan that gave the regional’s administration a stake of about 6% in the aircraft.