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American Airlines Reportedly Will Cut 13,000 To 15,000 Jobs
Posted February 2, 2012
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AMR Corp. announced Wednesday it will lay off between 13,000 and 15,000 employees as part of a plan to bring the bankrupt airline company back to profitability.
Tom Horton, CEO of embattled AMR Corp. (Pink Sheets: AAMRQ), told employees Wednesday the company must reduce its employee-related costs by $1.25 billion per year if it is to emerge from bankruptcy a stronger company.
Here's a breakdown of where the job losses will come, according to American Airlines spokesman Bruce Hicks:
• Agents, Reps, Planners - To be determined
• Fleet Service & Other TWU - 4,200
• Flight Attendants - 2,300
• Management/Support Staff - 1,400
• Mechanics and Related - 4,600
• Pilots - 400
Horton said the company must realize $3 billion in total annual savings.
"Now it is time for American to move forward on a decisive path. We are going to use the restructuring process to make the necessary changes to meet our challenges head on and capitalize fully on the solid foundation we've put in place," Horton said in a letter to employees.
He said that all work groups of the company, which includes the flagship carrier American Airlines and regional carrier American Eagle, would experience 20 percent reductions in cost.
Employees leaving a meeting Wednesday between AMR officials and leaders of unions representing most of AMR's workers avoided media camped outside the American Airlines training building where the meeting took place.
AMR filed for Chapter 11 bankruptcy in November, citing its high labor and fuel costs. It reported a loss of $904 million in December.
Atlanta-based Delta Air Lines Inc. (NYSE: DAL) is reportedly among suitors vying to buy AMR.
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