Media reports indicate that Cathay Pacific Airways (293) has asked all departments to find ways to save costs and improve efficiency to control expenses in light of anticipated lower business growth this year.
Sources have stated that the airline is targeting about a 5% cost reduction for non-operational staff, focusing on spending in areas such as marketing and administration at its headquarters, partly to free up funds for investments, including artificial intelligence.
Currently, some departments and positions within Cathay Pacific are being merged, and some employees are being reallocated. Insiders suggest that there will be small-scale layoffs for staff in Hong Kong and overseas. Cathay Pacific has previously announced plans to hire 3,000 people this year, which would increase the total number of employees to over 34,000 by the end of 2025.
In response, Cathay Pacific stated that it is actively seizing opportunities presented by the Three-Runway System and other favorable conditions to continue expanding its business and recruiting new talent, with a particular focus on the Hong Kong market. The company aims to reach a total employee count of approximately 34,000 by 2025, and the entire group plans to hire approximately 3,000 new employees to support the company's long-term development. At the same time, it continues to review and adjust its organizational structure in Hong Kong and other global regions to ensure alignment with the group's business development needs. Having an efficient and execution-focused team will help Cathay maintain stability and flexibility in a competitive and fast-changing external environment. Cathay also expressed its commitment to continually assessing and optimizing business operations and organizational structure to achieve its long-term strategic goals.
Reports indicate that as capacity growth slows, cost control is crucial for Cathay to maintain profitability. With foreign airlines increasing capacity, Cathay Pacific must proactively manage its spending to offset the pressure from declining passenger revenue.
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