Hong Kong’s Cathay Pacific reassures staff over revamp of workforce
No figures given but airline says it will create new jobs and redefine others
Cathay Pacific Airways yesterday said “some jobs will no longer be needed” as it unveiled its plan to turn the business around “for change and success”.
Hong Kong’s flagship airline yesterday confirmed the restructuring exercise, while a union leader said the changes would affect only back-office work.
While some jobs would go, others would be redefined and new ones created, it said, but gave no figures. A source familiar with the current plans said the net effect on the overall number of jobs should be zero.
In outlining a review of the business, Cathay cited changing and increasing customer expectations, rising competition, and an unstable global economy. It said these and other factors “have combined to put huge pressure on our business”. “The competition is here to stay and the uncertainty is ‘the new normal’ – we simply must respond,” it said.
Cathay’s business has deteriorated for three consecutive years, even amid falling jet fuel costs. It posted HK$13 billion in fuel hedging losses over the 18 months to June 30 last year. “We need a leaner, simpler structure that is driven by real insights into our customers and their needs and one that will allow us to respond quickly to change,” a spokeswoman said.