The aircraft maintenance company Haeco laid off 166 staff yesterday and slashed salaries by a quarter for some other employees.
The Hong Kong Aircraft Engineering Co said the lay-offs and wage cuts were difficult but necessary in order for the firm to remain competitive. It said total staff had been cut from 4,400 to 3,700 over the past few months with the help of voluntary redundancies.
The pay cuts were imposed on 250 staff in the ramp services section, said the company, the SAR's biggest aircraft maintenance firm.
Managing director Chan Ping-kit said the lay-offs were complete.
'The comprehensive restructuring which has taken place over the past three months has been a painful process,' he said.
In November, several hundred staff went on strike for a week to protest against a cut in overtime allowances.