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Naomi Ng

Cathay Pacific Airways has downsized and restructured its top management while middle managers are set to be interviewed for redeployment, according to new details of the airline’s streamlining plan.
It marks the embattled flagship carrier’s first steps towards slashing 30 per cent of staff costs at its Hong Kong base after it posted a HK$575 million loss in March.
An internal message and video posted Friday, introducing Cathay’s new structure, said senior management staff numbers had been reduced from 13 to 11.
Cathay’s leadership change is no magic bullet, warn analysts
Rupert Hogg, who replaced Ivan Chu Kwok-leung as chief executive officer on Monday, is now the firm’s only leadership point. His previous role as chief operating officer was scrapped.
Under Hogg, three director roles were merged under two new high-ranking positions – a chief customer and commercial officer and chief operations and service delivery officer.

“We will only succeed if we are a more agile, accountable and customer centric organisation and the new structure is designed to enable just that,” Cathay’s director of people, Tom Owen said in the video.
Meanwhile, a source told the Post that Cathay would soon conduct interviews with management staff for redeployment while some roles would be made redundant. A spokesman for the airline said the exact number of senior and middle management redundancies was not yet available.
Cathay currently has 19,000 staff in Hong Kong, with about 5,300 of those in a variety of head office functions.
Cathay Dragon eyes HK$30 billion order of aircraft, raising fleet investment by 50 per cent
Dora Lai Yuk-sim, chairwoman for Cathay Pacific Airways’ Flight Attendants Union, welcomed the shake-up.
“If this speeds up decision-making and makes the company more passenger centric as they said it would, of course we would welcome it,” she said. “We would always have to wait for answers on any suggestions or proposals and we would get no confirmation because of all the bureaucracy.”


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Cathay Pacific

Cathay Pacific launches leadership shake-up ahead of staff cuts and major restructure

Cathay Pacific is embarking on a HK$30 million cost cutting strategy after posting a HK$575 million loss in March. Photo: AFP

Check-in booths of the Cathay Pacific Airways at the Hong Kong International Airport in Chek Lap Kok. 20MAY15

Cathay’s leadership change is no magic bullet, warn analysts

Cathay’s shares are down 17 per cent over the last year. Photo: EPA

Ivan Chu Kwok-leung, chief executive officer of Cathay Pacific Airways Limited (Left) and Rupert Hogg, Chief Operating Officer of Cathay Pacific Airways (Right)

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Middle management at the embattled carrier will be interviewed for redeployment, while other positions will be cut completely


Cathay Pacific launches leadership shake-up ahead of staff cuts and major restructure

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Middle management at the embattled carrier will be interviewed for redeployment, while other positions will be cut completely

Middle management at the embattled carrier will be interviewed for redeployment, while other positions will be cut completely