Daily Management Review

American Airlines to downsize 30% of managers and administrative staff


American Airlines intends to downsize 30% of its managers and administrators, according to The Wall Street Journal, citing a letter sent to the airline. In total, the reduction will affect more than 5 thousand people.

Eric Salard
Eric Salard
The letter said that the removal of federal quarantine and the introduction of some concessions in the field of air transportation began to positively affect the company’s affairs. However, the airline management is confident that it will take years to fully restore the airline industry. “We must prepare to operate a smaller airline for the foreseeable future,” the letter said.

Until June 10, the company will offer employees to voluntarily leave work with compensation payments, and if the number of volunteers is insufficient, then forced reductions will begin. All staff reductions will continue to pay salaries until the end of September.

Earlier, the upcoming employee reductions were also announced by Boeing, which intends to lay off a total of about 13 thousand people.

source: wsj.com