Cathay Pacific reportedly announced its layoff plan on Wednesday as soon as possible

Financial News

Written by: Zhang Weilun

2020-10-20 18:16

Last update date: 2020-10-20 18:25

Recently, it has been reported from the market from time to time that Cathay Pacific Airways (0293) will announce layoff plans within this week, affecting thousands of people.

Regarding Cathay Pacific’s proposed layoffs, new news came out today.

The South China Morning Post quoted a source as saying that Cathay Pacific will announce its layoff plan as soon as Wednesday’s market closes. It is expected that about 6,000 jobs will be laid off globally, which is 25% less than the original plan. Among them, 5,000 employees in Hong Kong will be affected.

At the same time, it was pointed out that the Cathay Dragon brand would be abandoned. It was believed that the two brands could not be afforded under the current economic situation. There was also news that the Cathay Dragon brand would be abandoned.

According to the report, Cathay Pacific originally planned to lay off 8,000 employees globally, but it has been adjusted to reduce the number of global employees by about 18%. Among the affected employees, 5,000 are from Hong Kong.

Cathay Pacific plans to reduce the size of its staff this time, which is already lower than that of its peers. General airlines cut their staff by 20 to 30%.

The report also pointed out that a Cathay Pacific spokesperson said it would not respond to rumors.

Will strive to retain the Cathay Dragon pilots

The report quoted sources who pointed out that in the current environment, Cathay Pacific cannot retain the two brands, but the company will not abandon the mainland market and will maintain its position as a regional aviation hub in Asia.

At the same time, we are also committed to retaining Cathay Dragon pilots, because most Cathay Dragon pilots are trained locally and are local talents.

The report also pointed out that the resignation compensation plan is better than the plan sought by the union.

The report also stated that Cathay Pacific’s current layoff plan is based on the company’s failure to predict the recovery from the new crown pneumonia epidemic in the aviation market.

Cathay Pacific Airways Cathay Pacific lays off new crown pneumonia