Financial News
Written by: Zhang Weilun
2020-10-21 09:21
Last update date: 2020-10-21 09:27
Cathay Pacific Airways (0293) announced the restructuring plan, the entire group will cut about 8,500 positions, equivalent to about 24% of the group's total positions, and stop operating Cathay Dragon.
However, the share price of Cathay Pacific was not stimulated by the news this morning, and the latest price was 5.72 yuan, flat.
According to the group, through the freezing of recruitment and the loss of natural staff, the actual reduction of employees has been reduced to about 5,900 (about 17% of the total number of positions in the group), including about 5,300 employees based in Hong Kong and about 600 non-resident employees. Hong Kong employees may also be affected, but this depends on the regulatory requirements of the relevant region.
Cathay Pacific pointed out that although the epidemic has brought severe challenges, although it has made many efforts, it still loses 1.5 to 2 billion yuan in cash every month. It is expected that this reorganization will reduce the group's monthly cash expenditure by about 500 million yuan this year.
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Cathay Pacific Airways
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