In an internal memo, sent to staff yesterday (March 16) and seen by news agency Reuters, chief executive Ivan Chu said a new management structure for the carrier’s Hong Kong headquarters would be announced in June.

According to the memo, the axe is set to fall on middle and senior management positions, though the final number of jobs to go has yet to be finalised, Reuters reports.

Chu said the airline needed a “simplified, more agile and smaller” head office structure, and that the “re-organisation will inevitably result in some roles being made redundant”.

The airline, which is Hong Kong’s flag carrier, reported its first full-year loss since the 2008 global financial crisis earlier this week.

It said the business had been affected by overcapacity, a strong Hong Kong dollar and mounting competition from mainland Chinese rivals.

"The outlook remains challenging and we do not expect to see any fundamental shift due to the structural issues we are faced with," the memo said. "Our airlines have not seen a review of the business or restructured our teams for over 20 years. We cannot afford to stand still."

A Cathay spokesperson confirmed the memo was accurate but said the airline would not know the full extent of the role changes or staff affected “until later in the process,” Reuters reports.

Chu told staff there would be no "people cost reductions" in customer facing roles including pilots, cabin crew and customer service.

The airline said in its annual results, released on Wednesday, that it wants to reduce overall costs, excluding that related to fuel, by about 2% over the next three years but would look to grow its capacity by 4% to 5% this year.