blueskies4ever
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- Mar 26, 2004
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United plans 6,000 job cuts
Staff and wire reports
PARIS — United Airlines, currently under protection from bankruptcy, plans an extra 6,000 job cuts as part of a cost-cutting plan, the Financial Times newspaper reported on Wednesday.
The cuts amount to a 10% reduction in the current workforce.
Before the attacks in the United States on September 11, 2001, the airline had employed 104,000 people. It now employs 62,000.
The report, quoting sources close to the matter, said the airline planned to reduce annual operating costs by $655 million.
The measures were part of a reorganization plan which president Glenn Tilton wanted to present to the board before the end of September.
In June the Air Transport Stabilization Board (ATSB) refused to guarantee a loan of $1.6 billion to the airline.
The company is now wholly dependent on capital markets to refinance itself and emerge from protection from bankruptcy under which it has operated since the end of 2002.
The report of extra cuts comes amid growing anger from the airline's flight attendants. Reuters reports the attendant's union is calling for new company management.
Ironically, the reported cuts come just a day after the airline said it would recall 375 flight attendants due to fuller planes and more international flights.
Staff and wire reports
PARIS — United Airlines, currently under protection from bankruptcy, plans an extra 6,000 job cuts as part of a cost-cutting plan, the Financial Times newspaper reported on Wednesday.
The cuts amount to a 10% reduction in the current workforce.
Before the attacks in the United States on September 11, 2001, the airline had employed 104,000 people. It now employs 62,000.
The report, quoting sources close to the matter, said the airline planned to reduce annual operating costs by $655 million.
The measures were part of a reorganization plan which president Glenn Tilton wanted to present to the board before the end of September.
In June the Air Transport Stabilization Board (ATSB) refused to guarantee a loan of $1.6 billion to the airline.
The company is now wholly dependent on capital markets to refinance itself and emerge from protection from bankruptcy under which it has operated since the end of 2002.
The report of extra cuts comes amid growing anger from the airline's flight attendants. Reuters reports the attendant's union is calling for new company management.
Ironically, the reported cuts come just a day after the airline said it would recall 375 flight attendants due to fuller planes and more international flights.
