United Airlines is reportedly planning massive job cuts when rules linked to its government rescue plans expire at the end of September.
Reuters said the company plans to cut at least 3,400 management and administration positions in October, some 30% of that sector's headcount while warning that a similar percentage of the carriers 12,250 pilots could be laid off as well as near-term travel demand remains 'essentially zero'.
U.S. airlines are legally obligated to retain all of their staff until October 1 under terms of last month's CARES Act that provided the industry with $25 billion in coronavirus relief, although some 37,000 workers at Delta Air Lines have volunteered to take unpaid leave, while United has reduced working hours for around a quarter of its 15,000 workforce.
“We have to acknowledge that there will be serious consequences to our company if we don’t continue to take strong and decisive action, which includes making decisions that none of us ever wanted or expected to make,” said Kate Gebo, executive vice president of human resources and labor relations, in a memo to United employees.
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