New crown pneumonia | Cathay Pacific's internal rumours of the October layoffs quoted senior executives: no need to be discouraged

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Written by: Chen Jingqi

2020-08-18 18:55

The new crown pneumonia epidemic in Hong Kong has severely hit the shipping industry. Cathay Pacific Airways recently announced its interim results as of the end of June this year, with a loss of 9.865 billion yuan in the first half of this year. It is reported that the internal group of Cathay Pacific employees recently circulated that the company has plans to lay off employees in October this year. Taking ground crews as an example, it is rumored to lay off one-third of the staff. In terms of air crews, the total global layoffs reached 4,000.

Cathay Pacific Air Service Staff Association Chairman Wang Simin said in an enquiry from "Hong Kong 01" that the union had recently met with senior officials on rumors of layoffs. She quoted senior officials as saying "no need to worry", and Cathay Pacific does not have an early retirement plan for cabin crew at this stage.

When Cathay Pacific responded to the enquiry, it said that it would not respond to the rumors, but said that the Cathay Pacific management team is reviewing all aspects of the group's business operations and will propose to the board of directors on the airline's future operating scale and model in the fourth quarter of this year. Suggest.

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A few days ago, the internal group of Cathay Pacific employees circulated that Cathay Pacific asked all departments to hand over the list of layoffs in September this year, and intends to "surge" in October. It is rumored that the scale of layoffs involves one-third of the ground crew; as for the air crew, the total global involvement is 4,000. people. Rumors also said that Cathay Pacific has the opportunity to provide compensation to the dismissed employees with a monthly salary equivalent to 3 or 5 months.

Wang Simin, chairman of the Cathay Pacific Air Service Staff Association, admitted that news of layoffs had been circulating internally a few days ago, so he recently met with senior officials to learn more. Wang Simin quoted Cathay Pacific executives as saying that there is no need to be too discouraged by the rumors of layoffs and revealed that Cathay Pacific does not currently have an early retirement plan for cabin crew.

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"Hong Kong 01" asked Cathay Pacific about the layoffs. A Cathay Pacific spokesperson stated that it would not respond to rumors. The spokesperson continued that as previously announced, the Cathay Pacific management team is reviewing all aspects of the group's business operations and will make recommendations to the board of directors on the airline's future operating scale and model in the fourth quarter of this year.

Cathay Pacific Chairman Patrick Healy responded to the layoffs at the interim results meeting last Wednesday (12th). He pointed out at the time that the new crown pneumonia epidemic has brought unprecedented challenges to the company, saying that passenger traffic will not recover significantly in the future. Cathay Pacific currently loses about 1.5 billion yuan in cash per month, and the relevant measures to reduce expenditure are not sufficient. Therefore, the group must maintain a sustainable and healthy financial situation. Restructuring is a "difficult but necessary decision." Therefore, the most appropriate future operation scale and model will be proposed on the board of directors in the fourth quarter. It is too early to discuss the results of the review.

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