Leading HK Architecture Firm Struggles, Cuts Pay by 9% and Ends 3 Days of Unpaid Leave

Hong Kong’s property market has plunged nearly 30% from its peak, leading to a significant slowdown in private development projects and a major impact on the construction industry. DLN, a prominent local architecture firm, recently announced further cost-cutting measures following last year’s 10% pay cut and mandatory unpaid leave arrangement. Starting this November, the firm is implementing an additional 9% salary reduction while simultaneously canceling the previous arrangement of three unpaid leave days per month.

According to an internal letter from the firm, the economic environment and the sluggish property market have shown no signs of improvement over the past year. Both government and private developers have taken a cautious and passive approach, resulting in a further reduction in business compared to last year. To cope with these challenges, the company has decided to introduce an additional 9% pay cut on top of the existing 10% reduction implemented last year, bringing the total pay cut to 19%.

The letter emphasised that these measures are temporary and that the company will continue monitoring market conditions to reassess the decision. Employees are required to agree to and sign the new arrangement by next Wednesday.

Sources indicate that the new pay cut will apply to all employees across the company. DLN, headquartered on the 46th and 47th floors of Tower One in Times Square, Causeway Bay, is one of Hong Kong’s leading architecture firms.

The firm is known for its work on several iconic residential and commercial developments, including Kingswood Villas in Tin Shui Wai, Whampoa Garden in Hung Hom, The Center, and Cheung Kong Center II.

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