American Airlines: Letter To Employees
The parent company of American Airlines (AA) says it will cut around 15% of its workforce. American Airline which filed for bankruptcy protection, also wants to make changes to its staff pensions. The airline lost about $884m and more in the first nine months of 2011. AMR's chief executive, Thomas W Horton said in a letter to his employees "We are going to use the restructuring process to make the necessary changes to meet our challenges head-on and capitalise fully on the solid foundation we've put in place." By that he means the company would move on from bankruptcy with fewer workers.
On February 2, 2012, American Airlines announced they will be cutting 13 thousand jobs to save a billion dollars. The biggest cuts are about 4,600 and
are expected to be among maintenance workers. Baggage handlers could be cut by 4,200, while some 2,300 flight attendants, 1,400 management employees and 400 pilots would also be out of their jobs. Transport Workers Union members were scheduled to vote on a new contract with American Airlines, or AA. The strong workforce is mostly represented by three main unions, which are against to the changes. Over the past decade, American has lost over $11 billion, which is about 15% of the industry’s total losses over the history of the entire industry. Its all come to poor management skills from the chief executive, Thomas W Horton at that time. If top managements suddenly decide that it has 13,000 too many employees, the first cuts should be from the top management, where all the bad decisions were made.
On February 2, 2012, American Airlines announced they will be cutting 13 thousand jobs to save a billion dollars. The biggest cuts are about 4,600 and
are expected to be among maintenance workers. Baggage handlers could be cut by 4,200, while some 2,300 flight attendants, 1,400 management employees and 400 pilots would also be out of their jobs. Transport Workers Union members were scheduled to vote on a new contract with American Airlines, or AA. The strong workforce is mostly represented by three main unions, which are against to the changes. Over the past decade, American has lost over $11 billion, which is about 15% of the industry’s total losses over the history of the entire industry. Its all come to poor management skills from the chief executive, Thomas W Horton at that time. If top managements suddenly decide that it has 13,000 too many employees, the first cuts should be from the top management, where all the bad decisions were made.