HONG KONG – Cathay Pacific Airways said on Monday it is laying off nearly 600 staff at its headquarters as it faces rising competition from rival carriers and tough business conditions.
The airline said it plans to axe about 190 managers, or a quarter of all the company’s management jobs.
It’s also eliminating the jobs of 400 workers in non-managerial roles.
Cathay said in a statement that frontline workers, including pilots and cabin crew, would not be affected, but “will be also be asked to deliver greater efficiencies and productivity.”
Hong Kong’s biggest airline is making cuts after it reported a US$74-million loss last year.
It was Cathay’s first annual loss since 2008. The company blamed the poor performance on intensifying competition from both Asian budget carriers and mainland Chinese airlines and the slowing Chinese economy, which crimped travel demand.
Chief executive officer Rupert Hogg said in a statement the company had to make “tough but necessary decisions for the future of our business”.
“Changes in people’s travel habits and what they expect from us, evolving competition and a challenging business outlook have created the need for significant change,” said Mr Hogg, who was promoted to the position earlier this month as part of a three-year corporate overhaul.
The airline, which employs 16,500 workers in Hong Kong, said most of the layoffs will be completed by the year’s end.
The Associated Press