According to a report from the South China Morning Post on Tuesday, Hong Kong’s Cathay Pacific Airways Ltd stated it will cut 18% of its worforce, which amounts to 6,000 jobs, to help it weather the coronavirus-induced COVID-19 pandemic.
Earlier this year in June, the airline had said, it was in the process of reviewing the travel downturn, with “tough decisions” to be announced during the fourth quarter; analysts had expected major job cuts.
In June, the Hong Kong government led a $5 billion rescue package for the airline, which has been burning cash at a rate of HK$1.5 billion to HK$2 billion a month.
According to the report, which cites sources, “the Cathay Dragon brand, would be sacrificed but staff and resources of the two airlines would be merged.”
Cathay did not respond to requests for comments.
In September 2020, the airline had said it would not apply for further government employment subsidies for its main business units, thus freeing up its ability to make job cuts at either the Cathay Dragon or at Cathay Pacific; job cuts will not occur at its budget carrier – HK Express.