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Cathay Pacific Airways is expected to announce job cuts later this week, as some analysts say the company will report a full-year loss for 2017, its first since 2010, Reuters reports.
The airline is expected to announce the job cuts during the presentation of review results this Wednesday. Reportedly, Cathay will have to reduce its 33,700 workforce as part of cost reductions.
Competition from mainland carriers and the lower cost Hong Kong Airlines has put pressure on ticket prices, while Cathay’s costs have risen due to the strength of the Hong Kong dollar against the Chinese yuan, Reuters writes.
Cathay will make “the right long-term decisions” in preparation of a “challenging and competitive environment coming up”, chief operating officer Rupert Hogg told the South China Morning Post. He added that the company will “rethink its workforce” and mentioned reassigning staff and redundancies as options.
Commenting on the news via email, a company spokesperson told Human Resources magazine: “Cathay Pacific will share its new business strategy with around 350 senior managers at the annual Leadership Conference, and also with all our staff.
The focus will be on laying out the context for the new strategy, addressing the challenges the company currently faces, and showing how the new strategic direction will transform the way things are done.”
The company did not comment on the reported reassignment or cutting of staff.
Cathay isn’t the only airline that has been struggling. Last year, Australian airline Qantas reported record annual profit results, but only after cutting 5,000 jobs over a three-year period. The transformation programme left many employees with less hours, working on a casual basis, or no longer employed at all.
After turning its finances around as a result of the cuts, the company awarded extra cash bonuses of up to HK$17,734 for 25,000 non-executive staff.
Photo / Cathay Pacific