Cathay Pacific, Hong Kong’s major airline, on Wednesday said it would slash thousands of jobs and scrap its subsidiary carrier, Cathay Dragon, in a major restructuring intended to cope with the continued impact of the coronavirus pandemic on the airline industry.
About 8,500 jobs, or 24 percent of the company’s head count, would be cut under the new plan. Of those, about 5,300 Hong Kong employees would be made redundant. Executives would also take pay cuts, and company will also suspend salary raises next year.
“The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the group to survive,” Augustus Tang, the chief executive of the company said in a statement.
“We have to do this to protect as many jobs as possible,” he said, adding that the company had already scaled back capacity, frozen recruitment and cut executives’ salaries, but was still burning up to about $260 million monthly. Mr. Tang said he hoped to reduce that to about $65 million under the restructuring, which will begin to take effect immediately.