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Fri, Jun 22, 2018

American Airlines Eyes Executive Cuts

Integration With US Airways Is Nearly Complete

American Airlines is planning to reduce the number of executives working for the company as it wraps up its integration of US Airways.

The Dallas Morning News reports that AA CEO Doug Parker and president Robert Isom have sent a letter to employees saying that some executives will be offered buyouts to leave the company, and some positions at and above the director level will be eliminated.

Parker and Isom said that with the work to integrate US Airways into American nearly complete, fewer managers will be required for long-term operations.

The letter pointed out that the action is the result of an evaluation of the corporate structure aimed at more productive operations. "While not all integration work is complete, much of it is and as a result, now is the right time to look at the organizational structure we need for the future," the letter said.

The letter did not specify how many jobs will be eliminated, according to the report. Employees at the director level with more than two years of service will qualify for the buyouts and severance benefits. The company expects that some layoffs will also be required.

(Image from file)

FMI: Original report

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