American Airlines said it is laying off 13,000 union workers. Most of the cuts come from the airline's maintenance operations. Other eliminations include ground workers and flight attendants. Some 1,400 employees in management will loose their jobs, including 400 pilots.
"We will end this journey with many fewer people. But we will also preserve tens of thousands of jobs that would have been lost if we had not embarked on this path," said Thomas Horton, CEO of AMR (AAMRQ), American Airlines' parent company.
The timeline for the layoffs is still uncertain although the company needs to save more than $1.25 billion each year in labor costs. A portion of the savings may come from a shift in underfunded pension plans to Pension Benefit Guaranty Corp., although the government agency said it would block this move by American Airlines.AMR Corp filed for bankruptcy on Nov. 29, 2011.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts