American Airlines will cut 30% of its workforce including management and support staff
American Airlines Group Inc. stated on Wednesday that it plans to cut 30% of its management and support staff or almost 5,000 jobs because of the coronavirus outbreak.
American and other airlines are scrambling to cut costs because of the pandemic’s devastating effect on the aviation industry, which has pushed them to their first losses in years. Airline executives said that they are expecting a shrink in their human resources because of the weak travel demand.
“Although our pre-pandemic liquidity, the significant financial assistance provided by the government, and the cash we’ve raised in the capital markets provide a foundation for stability, we need to reduce our cost structure, including our most significant expense — the cost of compensation and benefits,” American Airline’s Executive Vice President of People and Global Engagement Elise Eberwein said in a company memo.
American Airlines will offer voluntary leaves and early retirement to its 100,000 employees.