Hong Kong's flagship airline Cathay Pacific is chopping 600 jobs in its head office among its biggest shake-up for two decades.
The carrier is seeking to bolster its bottom line after posting its first annual net loss in eight years in March, amid rising competition from mainland Chinese rivals, as well as fewer premium class passengers.
The firm said on its results that it will slash costs by 30 per cent, and has announced today that it will cut 600 jobs across senior, middle management and non-managerial roles at its Hong Kong headquarters.
Some 190 management roles are going along with 400 non-managerial positions, representing 25 per cent of management and 18 per cent of non-managerial positions respectively.
Rupert Hogg, chief executive at 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.
He added: "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.”
Cathay Pacific said those who become redundant in the structure shake-up will receive "a severance package including up to 12 months' salary, extended medical benefits including counselling and support, and additional and extended travel benefits".
The airline is also restructuring its cargo department, removing the role of cargo director so its commercial and planning functions will report into the director of commercial and cargo.