Cathay Pacific to cut 8500 jobs, one quarter of all staff as COVID-19 hits bottom line

Hong Kong-based airline Cathay Pacific has announced it will cut almost a quarter of all staff as it scrambles to stay alive in the wake of COVID-19.

In an announcement to shareholders this morning, the Cathay Pacific Group said it was undertaking "corporate restructuring" which would involve the reduction of 8500 positions or 24 per cent of its workforce.

Of those jobs, 5900 current jobs will be lost and the remaining 2600 jobs will go as part of "natural attrition" and a "recruitment freeze".

READ MORE: Cathay Pacific asks staff to take three weeks unpaid leave as coronavirus hits bottom line

The biggest losses will be felt locally, where 5300 Hong Kong-based employees are expected to be made redundant.

A further 600 employees outside of Hong Kong will also be let go, pending local regulatory requirements.

Additionally, the airline will axe its "Cathay Dragon" brand, which operated short-haul flights primarily within Asia.

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Aircraft cabin and cockpit crew are also being asked to agree to new remuneration terms to "match productivity" and "enhance market competitiveness".

Cathay Pacific's CEO Augustus Tang said the airline is burning up to $HK 2 billion ($AUD 365 million) in cash a month.

"The global pandemic continues to have a devastating impact on aviation and the hard truth is we must fundamentally restructure the Group to survive," Mr Tang said.

READ MORE: Cathay Pacific cuts bulk of April flights

"We have to do this to protect as many jobs as possible, and meet our responsibilities to the Hong Kong aviation hub and our customers.

"Our immediate priority is to support those affected by today's announcement. We are deeply saddened to part ways with our talented and respected colleagues, and I want to thank them for their hard work, achievements and dedication."

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