American Airlines is planning to cut 30% of its management and support staff, a reduction of about 5,000 jobs, because of the toll coronavirus is taking on the business, the company told employees Wednesday.
The airline also started offering buyouts to these employees and said it plans to offer new voluntary leave and buyouts for frontline staff, such as flight attendants, next month, according to a company memo that was viewed by CNBC.
Airline executives have said they expect to shrink because of the weak demand, which has also prompted them to park hundreds of jetliners, slash routes and urge employees to take voluntary unpaid or partially paid leave, and in some cases retire early.
Management and support staff will have until the end of June 10 to apply for the buyout and American is offering volunteers a third of their pay through the end of 2020 and five years of travel privileges.
"There is no doubt this is going to be a painful time for all, especially for our departing colleagues, who have given American Airlines their all and are leaving through no fault of their own," Eberwein said?
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