Cathay Pacific Group to cut workforce by 24% and cease Cathay Dragon brand

Cathay Pacific Group announced (21-Oct-2020) a corporate restructuring in response to the continued impact of the coronavirus pandemic on the aviation market. Major elements of the restructuring include:

• Reducing its workforce by 24% (8500 positions) of its established headcount. Through a recruitment freeze and natural attrition, the group has been able to reduce this to 5900 actual positions (or 17% of its established headcount). This means some 5300 Hong Kong-based employees being made redundant, and approximately 600 employees based outside of Hong Kong also possibly being affected subject to local regulatory requirements;
• Cathay Dragon will cease operations with immediate effect. The group plans to seek regulatory approval for a majority of Cathay Dragon's routes to be operated by Cathay Pacific and HK Express;
• Hong Kong-based cabin and cockpit crew members of Cathay Pacific will be asked to agree to changes to their conditions of service which are designed to match remuneration more closely to productivity and to enhance competitiveness;
• Executive pay reductions will continue through 2021 and a third voluntary special leave scheme for non-flying employees will be introduced for 1H2021. There will be no salary increases for 2021 nor the payment of the annual discretionary bonus for 2020 across the board for all employees. [more - original PR]