American Airlines plans management layoffs
American Airlines plans to downsize upper management with buyouts and will cut some executive positions.
The current management structure is top heavy due to work required to integrate US Airways after the merger began five years ago.
With that now mostly completed several positions are no longer needed.
"As all companies do from time to time, we need to evaluate our current organization with a goal to operate more productively," CEO Doug Parker and president Robert Isom wrote in a memo to employees.
"While not all integration work is complete, much of it is and as a result, now is the right time to look at the organizational structure we need for the future."
The airline did not disclose how deep the cuts will be.
Positions at director level or above with at least two years of service at American will be eligible for a buyout with severance benefits.
The restructuring will focus on upper management grades but the airline said it will also look at trimming numbers lower down the corporate ladder.
Much of the downsizing will come from attrition and not rehiring for open positions, but will likely include some layoffs.
The jobs of American’s more than 100,000 crew, maintenance and customer service unionized workers are not under threat.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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