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Cathay Pacific is reported to be preparing to slash overseas jobs, with Australia named by a Hong Kong newspaper as one of three countries likely to suffer staff cuts.

The Hong Kong-based airline has sent an internal memo telling staff to prepare for restructuring, Hong Kong’s South China Morning Post reported. Much speculation centres on how many of the airline’s 100 bases outside Hong Kong will be affected.

The Post quoted a source saying the coming job cuts would likely affect “markets with the largest number of staff – such as Australia, the United States and Britain”. Some employees in those countries have already been briefed by head office, the paper said.

“A source familiar with the airline” told the paper the coming changes would involve “consolidation” of overseas sales, marketing, cargo and airport-based operations.

Cathay Pacific employs about 7600 people outside Hong Kong.

The carrier is reportedly planning a workforce renationalisation to cut costs by HKD 4 billion (about AUD 687 million) in a bid to reverse two years of back-to-back losses.

Aviation in the region is highly competitive and volatile. For instance big Chinese carrier China Southern is exploring a joint venture with British Airways for flights between China and Britain, according to recent reports.

Cathay Pacific’s new A350-1000

In January, Cathay’s human resources head Tom Owen said in the company magazine that he knew it was “an unsettling time for outport people and we do expect to see some changes to the structure during 2018”.

Last week’s internal memo to staff mentioned that regional and country teams would, “where necessary, consult their local teams on the restructuring. This work will continue over the coming months.”

Written by Peter Needham