AMERICAN AIRLINES TO SLASH 30% OF MANAGEMENT, SUPPORT STAFF
American Airlines Group, Inc. is cutting up to 30% of its management and support staff as a result of reduced traffic and uncertainties in the aviation industry in the short- and medium-term, Tracy Rucinski of Reuters wrote on May 28, 2020.
Practically all US airlines have been cutting jobs after the COVID-19 pandemic hit the planet in December 2019 and spread quickly in various countries the following month.
All major US airlines have said they will need to shrink in the fall, once US government payroll aid that bans involuntary job cuts expires on September 30. Competitor United Airlines Holdings, Inc. has also said it will need to reduce its management and administrative staff by about 30%. Despite the bailout and other liquidity raises, American must “plan for operating a smaller airline for the foreseeable future,” Executive Vice President of People and Global Engagement Elise Eberwein said in a letter to employees.
American, with over 100,000 employees, will offer voluntary options before implementing involuntary reductions if there is not enough take-up, she said. Once it has reduced its management ranks, the company will turn to frontline employees including flight attendants and pilots, who will receive fresh voluntary leave and early retirement options in June with the aim of avoiding involuntary furloughs. #COVID19