Cathay to cut jobs overseas in restructuring plan
Cathay Pacific Airways warned its staff via an internal memo it was about to enter a phase of a three-year restructuring process. It would lead to layoffs in its overseas bases including Japan, the United States and Korea.
About 7600 employees are concerned in over 100 different locations outside of Hong-Kong. However, the company did not communicate which bases would be affected and the scale of the shedding.
Japan employees were already offered early retirements including severance packages during a meeting on July 23, 2018.
With its austerity policy and restructuring plan, Cathay expects to free about $510 million in operating costs over three years in order to recover from two years of losses.
In 2016, Cathay lost $73 million and $160 million the following year, despite trimming positions of 600 managers in Hong Kong in 2017. The losses are the result of an intensified competition from Chinese airlines, low cost in the region & heavier fuel charges.