American Airlines Warns 25,000 Employees of Possible Job Cuts Amid COVID-19 Pandemic
American Airlines has warned about 25,000 its frontline employees about possible job cuts this fall due to a slowdown in air travel demand amid the COVID-19 pandemic, CNBC reported, citing the company's note to the staff.
Moscow, July 16: American Airlines has warned about 25,000 its frontline employees about possible job cuts this fall due to a slowdown in air travel demand amid the COVID-19 pandemic, CNBC reported, citing the company's note to the staff.
According to the media, 25,000 airlines' employees account for roughly 29 percent of its US mainline workforce. The company urged the staff to take new extended leaves of up to two years or early retirement packages to get as many people off the payroll as possible before actual job cuts.
"And with infection rates increasing and several states reestablishing quarantine restrictions, demand for air travel is slowing again," CEO Doug Parker and President Robert Isom said in the letter to staff, as quoted by CNBC. American Airlines' revenue decreased by 80 percent year-on-year in June, the media stated.