Hong Kong flag carrier Cathay Pacific Airways announced May 22 it will be making around 600 people redundant in its head office.
“This is part of a transformation programme to make Cathay Pacific and Cathay Dragon more effective by improving the speed and quality of decision-making and putting a greater focus on its customers,” said the airline company in an emailed release.
It said the changes will affect senior, middle management, and non-managerial roles at the group’s headquarters in Hong Kong. Around 190 management and 400 non-managerial roles will go, representing 25% of management and 18% of non-managerial positions, respectively.
“The majority of affected employees will be informed of changes or a cessation to their role today and over the next month, with most of the restructuring completed by the end of 2017. While no frontline employees, pilots or cabin crew will be affected by today’s announcement as the airlines continue to grow, they will be also be asked to deliver greater efficiencies and productivity improvements, in line with the rest of the organisation,” said the statement.
Cathay Pacific said it will continue to invest in its frontline capabilities to deliver high-quality products and services to its customers.
Rupert Hogg, chief executive officer of Cathay Pacific, said: “We greatly appreciate and respect our people’s dedication, hard work and achievements. However, we have had to make tough but necessary decisions for the future of our business and our customers. Changes in people’s travel habits and what they expect from us, evolving competition and a challenging business outlook have created the need for significant change.
“Our immediate priority is to support our colleagues affected by today’s announcement, and I’d like to thank them for all they’ve done for Cathay Pacific.
“As we look to the future we will have a new structure that will make us leaner, faster and more responsive to our customers’ needs. It is the first step in the transformation of our business. We want to invest in and improve the experience that we offer people in Hong Kong and around the world, to find new ways to give our customers what they really want and need.”
All employees whose roles will become redundant in the new structure will receive a severance package including up to 12 months’ salary, extended medical benefits including counseling and support, and additional and extended travel benefits. Cathay Pacific will also offer all outgoing employees job search support, job application support, and interview training, said the carrier.
To align with the head office reorganization, Cathay Pacific will also restructure its cargo department, streamlining the structure by removing the role of cargo director. “The commercial and planning functions will report into the Director Commercial and Cargo, and be overseen by the Chief Customer and Commercial Officer. The services function will report into the Director Service Delivery,” it said.
The airline first bared its downsizing plans in January of this year, saying it was reviewing its organizational structure and effecting a massive revamp, an operational cost reduction, and job layoffs amid stronger competition and increased global economic volatility.
“2017 is going to be a year of significant change and an opportunity to better align our business with the increasingly competitive aviation landscape,” it said.
Photo: Michel Curi
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