In a letter addressed to employees, American said Wednesday that it had to eliminate around 30% of its management and support staff due to its transition to a smaller airline. In addition to the staff reductions, the Dallas-based company said that involuntary separation decisions will be communicated in July and that staff members will be on payroll until September 30th.
“A more efficient leadership team starts at the top and we are restructuring all the levels around the main leaders and future functions, starting with our team of officials,” said the letter. “We will announce a reorganized team of officials soon, and these leaders will restructure to later levels soon after.”
The company offers employees two voluntary exit programs, including a retirement package for employees who have worked at Delta for over 25 years. It also offers another buyout that covers most of its 90,000 employees.
In a note issued to approximately 11,500 workers, United Human Resources manager Kate Gebo said the company’s management and administration team could be reduced by 30% in October after funding by the United States government’s CARES Act.
United announced earlier this month that 20,000 employees, more than 20% of its staff, have taken voluntary leave. They also announced that it will offer buyouts and early retirement packages to employees.
-CNN Business’ Chris Isidore contributed to this report.
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