Cathay Pacific Airways said on Monday it was cutting 600 jobs, its biggest headcount reduction in almost two decades, as it seeks to return to profitability in an industry battered by falling ticket prices.
The job cuts are the first step in a three-year reorganization plan announced this year by Hong Kong’s flagship carrier. It posted an annual loss last year, its first since 2008, and is expected to be in the red again this year.
“We have had to make tough but necessary decisions for the future of our business and our customers,” new Cathay Pacific Chief Executive Rupert Hogg said in a statement.
The cuts represent 25 percent of management staff and 18 percent of non-managerial positions at its Hong Kong head office. The company had some 33,700 employees globally as of March.