(Bloomberg) -- Cathay Pacific Airways Ltd. will cut about 8,500 jobs and close its Cathay Dragon unit as part of a sweeping restructuring of Hong Kong’s flag carrier triggered by the hit to air travel from the coronavirus pandemic.
The job cuts amount to around 24% of Cathay’s headcount, with around 5,300 positions based in Hong Kong to be made redundant in the coming weeks, Cathay said in a statement. Dragon’s operations will cease from Wednesday and regulatory approval will be sought for the majority of its routes to be operated by Cathay and Hong Kong Express Airways Ltd. The restructuring plan has been approved by the airline’s board and will cost about HK$2.2 billion ($280 million), Cathay said.
The cuts are more than was expected, with the South China Morning Post reporting late yesterday Cathay would eliminate 6,000 positions.
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