Cathay Pacific will cut up to 5,900 jobs, shutter Cathay Dragon

Cathay Pacific has announced a corporate restructuring that will see up to 5,900 jobs slashed and the ceasing of operations of its Cathay Dragon subsidiary, effective immediately.

Though none have been immune to the effects of the COVID-19 pandemic, the aviation industry has been hit especially hard, with border lockdowns and shelter-in-place measures bringing international travel to a halt. The social unrest of 2019 had already taken a toll on the carrier, and once the pandemic started, Cathay was forced to eliminate 90% of its China-bound flights in response to reduced customer demand.

With the restructuring, Cathay Pacific hopes to become a more focused and efficient business while reducing operating costs to survive the new normal.

"Our immediate priority is to support those affected by today’s announcement," said Cathay Pacific CEO Augustus Tang. "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."

"Whilst this is a difficult time, we are a resilient group and a proud Hong Kong brand. I believe in this plan and I know we will prevail. We remain absolutely confident in the long-term future of Cathay Pacific, the Hong Kong aviation hub and the critical role Hong Kong will play in the Greater Bay Area and beyond," added Tang.

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