(RTTNews) – American Airways Group Inc. (AAL) has introduced plans to chop about 19,000 staff in October when the US federal help expires, because the coronavirus pandemic continues to wreak havoc on the journey and tourism trade.
American Airways CEO Doug Parker and President Robert Isom introduced the layoff information to staff on Tuesday. “At this time is the toughest message we’ve needed to share to this point – the announcement of involuntary staffing reductions efficient Oct. 1,” the executives stated in a memo.
“As you all know, the Payroll Assist Program (PSP) of the CARES Act protected our workforce in opposition to involuntary separations by way of Sept. 30. It additionally ensured that we and different airways continued to serve every of the markets we flew previous to the disaster. It was an extremely efficient piece of laws. By offering airways the funds to pay a lot of our workforce member salaries and advantages, it ensured the industrial airline trade stored flying within the face of very low demand for air journey and stored our nation shifting, with all markets persevering with to obtain protected and environment friendly industrial air service.”
American Airways’ workforce will shrink by a minimum of 40,000, together with 19,000 involuntary cuts, in October than the corporate entered this pandemic, except the federal government extends help for airline worker payrolls.
The corporate stated that greater than 12,500 of staff voluntary determined to go away the corporate completely by way of early out applications or retirement. One other 11,000 workforce members have provided to be on a depart of absence in October.
In June, American Airways had warned round 25,000 staff, which is about 20% of its complete workforce, about chance of furloughs.
The job cuts embrace 1,600 pilots, 8,100 flight attendants, 2,225 fleet service and 1,275 passenger service.
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