1,000 salaried/management to be laid off

[ualdriver]

http://www.marketwatch.com/News/Story/Stor...hoo&siteid=yhoo

UAL to cut 1,000 salaried, management jobs

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Last Update: 3:43 PM ET Jun 14, 2006


CHICAGO (MarketWatch) -- UAL Corp., parent company of United Airlines, plans to cut at least 1,000 salaried and management positions by the end of the year, part of a redoubled cost-savings effort, the company's chief executive said Wednesday.
Glenn Tilton, chairman, president and CEO at UAL, told investors at Merrill Lynch's Global Transportation Conference in New York that the job cuts are part of a plan to reduce spending on general and administrative overhead by about $100 million.
"As a part of that initiative, we'll be eliminating at least 1,000 salaried and management positions, out of approximately 9,400, by year-end," Tilton said.

 

[scuba]

Great! This is a huge step forward for United. 10%+ of middle management, with an average salary of $100,000 per year.

 

[ualdriver]

Great! This is a huge step forward for United. 10%+ of middle management, with an average salary of $100,000 per year.

I don't know what they make, but I doubt they average a 100 grand a year and I suspect most of them are guys/gals just like you and me trying to make a living like anyone else.

 

[QA4Jet-A]

I don't know what they make, but I doubt they average a 100 grand a year and I suspect most of them are guys/gals just like you and me trying to make a living like anyone else.

Exactly, I hope the best for them in trying to survive in this mess our economy/industry is in. I feel for anyone who is laid off due to Corporate mis-management acts, stupid decisions, fuel costs and a crazy environment. How scuba can call it "great" means either he/she works for another Carrier <which I doubt> or is in the stock market, which I have no respect for. I'm beginning to think Wall Street is populated by the French, Middle East or just a bunch of wussies.. Just MHO! Furthermore, when anyone can say "Great" that 1,000 people are being laid off, I wonder how they would feel if they were within that group. To the Thousand of you future unemployed, Good luck and I wish you the best.

 

[UAL_TECH]

I don't know what they make, but I doubt they average a 100 grand a year and I suspect most of them are guys/gals just like you and me trying to make a living like anyone else.

I agree, I doubt that the majority of the people being laid off do not make anything near the 100K mark. More than likely, after the layoffs, there will be an announcement of a new SRVP/and/or VP of something. What do we have now? 47 SRVP/VPs of 'something or other'? Before BK didn't we 'only' have 46 before?

Not making a statement for/against the VP/SRVPs, but considering the condition of the company and fleet 'rightsizing' are these executive numbers justified?

B) UT

 

[scuba]

As a former UA employee, who was laid off at one point, I can clearly state 'great' when it is not front line, union employees anymore! It is time to cut the fat of the company and I hope that is what Tilton is going for. If not then no it is not a good thing, and no I'm not so heartless as to say that it is good to see 1,000 people headed for unemployment.

Second, in any other profession, management is usually expected to work more than 40 hours per week. I know of several UA managers who must have to add commuting time to get to the 40 hours. Furthermore, from some people I still keep in contact with, they tell me things are worse now than ever before, with more supervisors and less front line employees. When you go from a work force of just over 100,000 (prior to 9/11) 80,000 when UA filed for BK, to the current just about 57,000, ridding the company of 1,000 management seems like a move in the right direction. Or lets look at it another way, you have 10,000 managers, (approx.) and 57,000 total employees. What is that, one manager for every six people (approx)? That seems to be a very top heavy company.

As for Wall Street, I must agree, but no I don't work there, nor am I an analyst.

As far as how I would feel being one of the 1,000? Well, having been there and done it first hand, it sucks! Life goes on, you still have to pay your bills, and you still have to provide for your family. You get another job, you take a pay cut, you make adjustments to your life, you add skills to your tool box, and you strive to make changes that will be good for yourself. Yes it sucks, but life goes on and with the current Wal-Mart state of our country, this is going on in all professions, all companies, and all levels of employees. It has taken me five long years to get my earnings back to where they were on 9/10/01 before inflation.

As for the average $100,000. If you take the facts from the article, and if you think they are correct, then you have $100,000,000 savings projected by cutting 1,000 jobs. That averages $100,000. Again, average with some being over, and some being under. Hard dollars, no! After rereading the article it appears they are including in that 'overhead costs' which could include such items as projected adding machine tape, rent on office space no longer needed, etc.

 

[UAL_TECH]

Exactly, I hope the best for them in trying to survive in this mess our economy/industry is in. I feel for anyone who is laid off due to Corporate mis-management acts, stupid decisions, fuel costs and a crazy environment. How scuba can call it "great" means either he/she works for another Carrier <which I doubt> or is in the stock market, which I have no respect for. I'm beginning to think Wall Street is populated by the French, Middle East or just a bunch of wussies.. Just MHO! Furthermore, when anyone can say "Great" that 1,000 people are being laid off, I wonder how they would feel if they were within that group. To the Thousand of you future unemployed, Good luck and I wish you the best.

QA4Jet-A,

Excellent post and observation!!

Furthermore, when anyone can say "Great" that 1,000 people are being laid off, I wonder how they would feel if they were within that group.

Again, I agree!

Take Care,
B) UT

 

[The Gopher]

From what I hear in the crystal palace, they are looking at worldwide sales, cargo, and reservations. Also none of us are even close to making 100K a year, only if you are a senior manager or director or above. New hire MBAs are at about $75-80K, college grads about $50K. I can tell layoffs are coming since the parking lot at WHQ is getting very full during the day.

The last two Thursdays have had layoffs in sales, and some off-tariff stuff. I'm guessing that total is included in the 1000. Also I am imagining that much of the 1000 will include turnover. My division averages about 20% yearly turnover, so if we just stop hiring for 6 months we'll be ok.

Keep in mind that only about 3500 work at WHQ, and 9500 SAM employees were identified. Where are the other 6000 people?

Good luck to everyone.

 

[FWAAA]

I don't know what they make, but I doubt they average a 100 grand a year and I suspect most of them are guys/gals just like you and me trying to make a living like anyone else.

I agree. A W-2 salary of about $65k to $70k equates these days to a total employee cost to the company of about $100k once you add the benefits, like insurance, Social Security tax paid by the employer, vacation, etc. The average annual earnings of these managers is probably about that of an airline mechanic.

 

[spacewaitress]

It's too bad there'll still be 350 + VPs to shuffle the pink slips around.

 

[seajay]

SAM means salaried and management. The term 'salaried" is used for clerical staff - the coordinator at the front desk in the domicile, the call professional who answers the phone at the Service Center, the payroll clerk or secretary who works in the Airport Managers office. In the Servuce Center, some of the jobs (like at other call centers) are being outsourced. In other places, there will be reductions in salaried along with management. Some supervisors, some office staff, some maangers. There is also consolidation in the cargo and airports group and in others across the company.

Hardly any of these people make anywhere near $100K.

These reductions go across all divisions and across the world, and yes, they have started already. We can hope that some of this is work that can be done more efficiently, like centralizing processes that are done locally with better technology. But we may also find that there are just fewer people to do the work in every department.

 

[whatkindoffreshhell]

Why is Tilton/Brace only doing this now?

(note: I am not speculating on the worth of these laid-off folks)

Three years in BK, hundreds of millions in consultant/lawyer fees, silly diversions like moving WHQ etc and only now is Tilton/Brace deciding to fire more good people?

Glenn & Jake should have been fired long ago.

Now you must question the UA BOD as to why they are tolerating this disastrous management of the shareholders money?

How can you people swallow such gross incompetence by your "leaders"?

 

[magsau]

From what I hear in the crystal palace, they are looking at worldwide sales, cargo, and reservations. Also none of us are even close to making 100K a year, only if you are a senior manager or director or above.
Good luck to everyone.

Gopher,

Best of luck. Layoffs are not fun for anyone and I wish all you guys the best.

Cheers

 

[JungleClone]

Tilton and Brace are only doing this now because they're starting to realize that they failed to make the necessary changes during bankruptcy. Blame Brace. His stupidity baked $50 a barrel oil prices into United's Plan of Reorganization. Now I don't know about you, but I'm running out of fingers to count the number of significant screwups Jake Brace has sheparded in his tenure as a senior executive for UA. This guy has more lives than Morris the Cat. I just don't understand what Tilton and the Board see in this guy. Wall Street and the investment community detest his condescending elitism and ineffectual communication style. And most UA employees detest him for the same reason. So here UA is once again, forced to make changes that should have been made during their 3 year stay in Chapter 11. And then once these changes are made, I'm imagine it ought to be bonus time once again in the executive suite. What a complete joke of leadership!

Scuba, you should also realize that there are many departments that lack a sufficient number of front-line management. Airport Operations is one area. Supervisors are in short supply and are badly needed. Maybe if the Service Director job actually had any teeth, front line supervisors wouldn't be as necessary. But the sad reality is that the Service Director job is not given enough resources by United to make it a successful program. Most are in it simply for the extra money but want nothing to do with the responsibility that goes with it. I'm sure there are many departments that have excess and bloated management, but it sure isn't Airport Operations. And I'd be willing to guess there are other departments just like it.

 

[casual rat]

I think Jack Brace has some 'delicate' video footage of a BOD X-mas party--it would explain alot!