Cathay Pacific says it's cutting 600 jobs as it seeks to return to profitability in an industry battered by falling ticket prices.
Hong Kong's flagship carrier Cathay Pacific announcing massive job cuts on Monday (May 22) with six hundred staff at the head office to lose their jobs. It's the airline's biggest shake-up in almost twenty years as it looks to get back in the black. Cathay recently recorded its first annual loss in eight years. The airline says no frontline employees, cabin crew or pilots will be fired - because it's still growing But says staff in these positions will be asked to step up their productivity A third of the cuts are management jobs and there's more to come, its just the first step in three-year reorganization plan. Experts say the airline industry is being battered by falling ticket prices and Cathay's facing stepped-up competition from mainland Chinese airlines, aggresively expanding their footprint overseas. The airline's new CEO Rupert Hogg said the cuts were quote "tough but necessary." Shares in the airline hit a two-month high on the news.