American Airlines notifies 25,000 workers of potential layoffs

Latest News

American Airlines notifies 25,000 workers of potential layoffs

Wednesday, July 15, 2020

Print this page Email A Friend!


NEW YORK, USA (AFP) — American Airlines is notifying 25,000 workers that they could be furloughed beginning October 1, executives said Wednesday, the latest major carrier to warn about massive layoffs.

Although the number of layoffs may be minimised through voluntary departures, American will have more than 20,000 excess workers on payroll due to a profound downturn in business caused by the coronavirus pandemic, Chief Executive Doug Parker and President Robert Isom said in a memo to employees.

Like other major airlines, the executives said the cost-cutting would be needed due to lackluster ticket sales amid fading hopes for a speedy bounceback in travel from COVID-19.

"With infection rates increasing and several states reestablishing quarantine restrictions, demand for air travel is slowing again," they said.

US carriers that received government aid under the CARES Act cannot lay off workers until after September 30.

American's layoff notices went to 2,500 pilots, 9,500 flight attendants, 3,200 maintenance staff and 1,000 reservations agents.

The executives said they "hope to reduce the actual number of furloughs significantly through enhanced leave and early-out programs for represented workgroups, which we are announcing today."

American's announcement is similar to one from United Airlines last week that warned of as many as 36,000 layoffs. Southwest Airlines and Delta Air Lines also signaled they may have to cut jobs if voluntary programs do not achieve enough savings.

Delta Chief Executive Ed Bastian said Tuesday that 17,000 employees had agreed to voluntary departures and he hoped more workers would step forward, "minimizing, if not eliminating, the need for involuntary furloughs."


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaper-login


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT