Cathay Pacific reportedly urges departments to cut costs in efficiency drive: Sources

This push may allow the flagship carrier to focus on investments in AI, amidst slowing rate of growth.

Bloomberg has quoted internal sources stating that Cathay Pacific Airways has asked all departments to identify ways to improve cost efficiency and operational performance in preparation for an anticipated slower growth rate this year.

Some departments and roles are expected to be consolidated, while certain employees will likely be reassigned. A limited number of job cuts are anticipated across Hong Kong and overseas.

According to the report, which was also pushed out in The Business Times, the group plans to cut costs by about 5% in areas related to non-operational staff, alongside reducing head-office expenses in functions such as marketing and administration. The move partly aims to create capacity for future investments, including AI and other initiatives.

In response to local media inquiries, a Cathay Pacific spokesperson stated that the company continuously reviews and adjusts its organisational structure in Hong Kong and globally to ensure alignment with business development and long-term strategic goals. The group emphasised its focus on recruitment in the Hong Kong market, actively seizing opportunities brought by the three-runway system and other favorable conditions.

The spokesperson reiterated that the group plans to hire around 3,000 people this year to support its long-term growth, as cited in various media. The total number of employees last year was approximately 34,000.

HRO has reached out to Cathay Pacific for further comments.