American Airlines Will Cut Down Labor Force by 30%

American Airlines Group Inc. (AAL) issued a letter to its workers indicating that it must trim down its management and support employees by at least 30% for the company to come out of the plunge it has been left into by coronavirus pandemic which has significantly affected the aviation sector globally.

By now all major airlines across U.S have hinted of a possible deep financial distress once U.S government payroll aid which prohibits involuntary job cuts expires on September 30.

Elise Eberwein, Vice President of People and Global Engagement, says there is need for the airline to start planning on operating on a smaller scale in the foreseeable future.

American Airlines, with over 100,000 employees, will offer voluntary options before implementing involuntary reductions if there is not enough take-up,” added Eberwein.

Eberwein believes after the airline has trimmed its managerial positions it will turn the chopping board toward its front line employees including pilots and flight attendants, whereby they will be issued with voluntary leaves and early retirement options between now and September so as to avoid involuntary furloughs.

She is of the opinion that in the coming near future American Airlines might be working with unions to maneuver best way possible out of the mess. “This is a goal, though, not a commitment, and a stretch goal at that,” she said.

American Airlines arch rival United Airlines Holdings Inc. (UAL) will be adapting similar measures, the airline announced it will be trimming its managerial and administrative staff by 30%.

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