Cathay Pacific is to cut around 600 jobs as part of a restructuring following its first annual loss in eight years.
The redundancies affect staff at its head office in Kong Kong with senior, middle management and non-managerial roles to be axed.
About 190 management and 400 non-managerial roles will go, representing 25% of management and 18% of non-managerial positions respectively, according to the airline.
“This is part of a transformation programme to make Cathay Pacific and Cathay Dragon more effective by improving the speed and quality of decision-making and putting a greater focus on its customers,” the airline group said.
The majority of the job cuts would be completed by the end of the year with affected employees informed today and over the next month.
“While no frontline employees, pilots or cabin crew will be affected by today’s announcement as the airlines continue to grow, they will be also be asked to deliver greater efficiencies and productivity improvements, in line with the rest of the organisation,” the company said.
“Cathay Pacific will continue to invest in its frontline capabilities to deliver high-quality products and services to its customers.
CEO Rupert Hogg 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.
“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. We want to invest in and improve the experience that we offer people in Hong Kong and around the world, to find new ways to give our customers what they really want and need.”
All employees whose roles will become redundant will receive a severance package including up to 12 months’ salary, extended medical benefits including counselling and support, and additional and extended travel benefits.
Cathay Pacific will also offer job search support, job application support and interview training.
The cuts follow a net loss of HK$575 million (£60.1 million) being posted for 2016.
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