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Cathay Pacific

Cathay to cut costs worldwide

Cathay Pacific aims to restructure overseas operations, where it has about 7,600 employees in 100 locations.

Cathay Pacific Airways is looking at ways to restructure its overseas operations, after cutting 800 jobs in Hong Kong last year, the South China Morning Post and TTG Asia report.

The airline group needs to slash costs further as it fights competition from low-cost carriers and airlines in mainland China.

Cathay would consolidate overseas sales, marketing, cargo and airport operations in some cities, with an unspecified number of jobs lost, according to an unnamed source familiar with the airline’s plans, commenting after an internal memo circulated to employees recently.

The airline posted a net loss of HK$1.26 billion (€135 million) for 2017. As part of its restructuring, Cathay is seeking to reduce costs by more than HK$4 billion over three years.

The company has around 7,600 employees based in 100 locations outside Hong Kong, according to the South China Morning Post.

Another source says the coming job cuts are likely to affect markets with the largest numbers of staff, such as Australia, the US and the UK, where some employees say they have already been briefed by the head office.

Cathay Japan tells the news agency Bloomberg that a restructuring process there has yet to be finalised, but Cathay’s South Korean office confirms that structural changes are starting there.

Cathay is reorganising its teams to enable faster and better-informed decision-making, following the redesign of its head office structure in Hong Kong.

Outport review
The move comes a year after its company magazine, The Journey, reported that Cathay was “starting a comprehensive review of our outports – how they work with [our headquarters], which will have an impact on their own organisational structures”.

In January, its human resources chief Tom Owen commented that he understood it was “an unsettling time for outport people, and we do expect to see some changes to the structure during 2018”.

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