After reporting an attributable loss of HK$575 million for 2016 on Wednesday, Cathay Pacific announced a target to slash head office management costs by 30%.
The target is to be achieved by cutting staff costs in middle to senior management levels in Hong Kong, according to a statement from the airline seen by Human Resources magazine. Employees of the company have been informed about the update regarding the restructuring plans.
The statement confirms that the job cuts will be head office and management centered. An important component of the initial stage of the restructuring is the redesign of the organisation around four key portfolios: commercial, operations and service delivery, customers, and people.
The exact number of job cuts is yet to be finalised and more details on the cuts will be revealed in June. A number of departments within the organisation are also expected to be merged as part of the effort to eliminate bureaucracy.
The Oriental Daily reports that the management of Cathay Pacific hosted two briefing sessions yesterday, which were attended by more than 500 staff members, to inform them about the cost cutting plans.
Earlier this year, in January, Cathay Pacific Airways hinted during its annual Leadership Conference that some jobs would be lost , as the company said it would conduct an overhaul of its business amid disappointing results.
"As with any transformation, there will need to be a shift of capabilities and responsibilities, so there will be areas of the business that need to grow and others that need to shrink. Overall we aim to build a faster, leaner and simpler organisational structure." A Cathay Pacific spokesperson told Human Resources magazine previously.
The airline currently employs 26,000 staff members in Hong Kong. Despite reporting losses, it plans to hire another 1,300 staff this year including pilots and attendants.
ALSO READ: Video: Cathay Pacific flight attendants fight to retire at 65
Follow us on Telegram and on Instagram @humanresourcesonline for all the latest HR and manpower news from around the region!