Hong Kong flag service Cathay Pacific on Wednesday introduced that it’s going to eradicate eight,500 job posts, making 5,900 workers redundant, and shut considered one of its regional airways with fast impact in an effort to deal with the Covid-19 pandemic-induced fallout. That is the corporate’s largest jobs reduce in its historical past, the South China Morning Put up newspaper reported.
Within the announcement, the service stated 5,300 city-based and 600 abroad staff can be made redundant “within the coming weeks”, whereas 2,600 unfilled posts can be abolished.
In the meantime, the corporate’s regional arm, Cathay Dragon, would “stop its operations with impact from at the moment” and search regulatory approval for many of its routes to be absorbed and operated by Cathay Pacific and funds sister unit HK Categorical.
Of the Cathay Pacific group’s 35,000 headcounts, 24 per cent of roles can be eradicated, the corporate stated, which would scale back its workforce to a stage final seen in 2007.
Because the pandemic hit town earlier this 12 months, the airline witnessed a 99 per cent collapse in its every day passenger quantity.
Presently, most of its planes are grounded, the South China Morning Put up stated in its report.
In an inside memo, Cathay CEO Augustus Tang advised its 35,000 workers: “We have now taken each potential motion to keep away from job losses up so far… Sadly, we won’t survive with out additional measures.
“This can be a heart-wrenching resolution to need to make, for which I’m actually sorry.”
The Worldwide Air Transport Affiliation (IATA), which represents the worldwide airline trade, had revealed in a forecast earlier this 12 months that a restoration in air site visitors to pre-pandemic ranges would take at the least 4 years.