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Cathay to sack 600 in Hong Kong, survivors must do more to keep jobs
HONG KONG's Cathay Pacific Airways has announced it will start laying off 600 head office personnel as part of its 30 per cent labour cost reduction scheme after the carrier posted a US$74 million net loss in 2016.
Pilots or cabin crew will not be affected, but will be asked to deliver greater productivity.
One casualty is the air cargo director, replaced by the chief customer and commercial officer, who reports to the director of service delivery.
The company said redundant workers will get "up to" 12 months' pay, medical coverage and travel benefits, as well as job search support, according to a company statement.
Some 190 management and 400 non-managerial roles will go, representing 25 per cent of management and 18 per cent of non-managerial positions respectively.
Most redundant employees will be told of their fate immediately and the restructuring is expected to be completed by 2018.
"We have had to make tough but necessary decisions," said Cathay CEO Rupert Hogg. "Changes in people's travel habits and evolving competition have created the need for significant change.
"As we look to the future we will have a new structure that will make us leaner, faster and more responsive," he said.
Pilots or cabin crew will not be affected, but will be asked to deliver greater productivity.
One casualty is the air cargo director, replaced by the chief customer and commercial officer, who reports to the director of service delivery.
The company said redundant workers will get "up to" 12 months' pay, medical coverage and travel benefits, as well as job search support, according to a company statement.
Some 190 management and 400 non-managerial roles will go, representing 25 per cent of management and 18 per cent of non-managerial positions respectively.
Most redundant employees will be told of their fate immediately and the restructuring is expected to be completed by 2018.
"We have had to make tough but necessary decisions," said Cathay CEO Rupert Hogg. "Changes in people's travel habits and evolving competition have created the need for significant change.
"As we look to the future we will have a new structure that will make us leaner, faster and more responsive," he said.
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