Cathay Pacific makes 600 redundant and scraps cargo director role

Cathay Pacific Boeing 777-300ER

Cathay Pacific has reorganised its head office and made around 600 people redundant in Hong Kong and has also restructured the cargo department.

The Asian carrier says in line with the reorganisaition it will “streamline” the structure by removing the role of cargo director.

Last month, Cathay Pacific revealed that Simon Large was leaving his role as director of cargo to become director of customer on June 1 with James Ginns taking on the position, who will now be relocated to another role.

As part of the reorganisation, the commercial and planning functions will report into the director of commercial and cargo, and will be overseen by the chief customer and commercial officer. The services function will report into the director of service delivery.

Cathay Pacific says the moves are part of a transformation programme to make Cathay Pacific and Cathay Dragon more effective by “improving the speed and quality of decision-making and putting a greater focus on its customers”.

The changes will affect senior, middle management and non-managerial roles at the Group’s headquarters in Hong Kong. Around 190 management and 400 non-managerial roles will go, representing 25 per cent of management and 18 per cent of non-managerial positions respectively.

The majority of affected employees will be informed of changes or a cessation to their role today and over the next month, with most of the restructuring completed by the end of 2017.

No frontline employees, pilots or cabin crew will be affected by today’s announcement as the airlines continue to grow, they will be also be asked to deliver greater efficiencies and productivity improvements, in line with the rest of the organisation.

Cathay Pacific chief executive officer, Rupert Hogg says: “As we look to the future we will have a new structure that will make us leaner, faster and more responsive to our customers’ needs. It is the first step in the transformation of our business.

“We want to invest in and improve the experience that we offer people in Hong Kong and around the world, to find new ways to give our customers what they really want and need.”