American Airlines will be cutting more than 40,000 jobs in the coming months, including 19,000 furloughs and layoffs.
According to the airline executives, the labor costs set to be saved by the layoffs will exceed $25 billion.
Even though hygiene and sanitation efforts have been multiplied in order to reacquire some of its business, travel giants like American Airlines are forced to minimize their workforce in order to survive the continued change in their industry’s economy.
American Airlines says that they have found 23,500 employees that have approved employment buyouts, agreed to retire early, or have signed on to take long-term leaves of absence to cut costs.
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Of the 19,000 jobs to be removed, flight attendants will see the largest percentage, with 8,100 jobs on the cutting block.
Greater extension of the federal relief could potentially change the future of almost a third of the airlines employees. “The one possibility of avoiding these involuntary reductions on Oct. 1 is a clean extension,” wrote American Airlines CEO Doug Parker and President Robert Isom in a letter issued to staff on Tuesday.
Many airlines in North America have seen layoffs in recent months including Air Transat, WestJet, Air Canada, and many more.
Dropping roughly 95%, the airline industry is in for a steep return to normalcy, with some experts saying it may be beyond 2024 when finances begin to regulate.