Cathay axes record 5,300 Hong Kong jobs and closes regional airline in HK$2.2 billion survival plan
- Cathay Dragon staff bear brunt of lay-offs with 2,000 cabin crew and 550 pilots laid off
- Desperate move highlights impact of coronavirus and raises fears other major companies could follow suit
Key points:
- Cathay Pacific to axe 8,500 posts: 5,900 staff made redundant worldwide, 5,300 jobs lost in Hong Kong, 2,600 unfilled roles eliminated
- Cathay Dragon brand to stop operating with immediate effect
- Restructuring to cost HK$2.2 billion, while HK$2 billion monthly cash burn reduced by HK$500 million per month via job cuts, airline closure
- Hong Kong-based cabin and cockpit crew asked to sign new, cheaper contracts
Cathay Pacific announced Hong Kong’s biggest mass lay-offs in three decades on Wednesday, axing 5,300 jobs in the city and closing its regional airline in a desperate restructuring attempt to survive the coronavirus pandemic.
Around 4,000 cabin crew, 600 pilots, and 700 ground staff and office workers were told they would be made redundant in a HK$2.2 billion (US$284 million) restructuring.
In total 5,900 staff would lose their jobs “in the coming weeks”, the airline said, with 5,300 of those coming in Hong Kong. About 2,600 unfilled posts would be abolished.
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Hong Kong’s flagship carrier Cathay Pacific to axe 5,900 staff and immediately drop Dragon brand
Patrick Healy, the group’s chairman, called the decision “heart-wrenching” and said he was “truly sorry” for the “great distress and anxiety” it had caused the affected staff and their families.
