More On: airlines
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United Airlines has reportedly asked employees to consider putting themselves on the chopping block as the coronavirus crisis forces the company to cut jobs. United chief operations officer Greg Hart urged some employees in a memo to consider leaving their gigs under a “voluntary separation” deal as the Chicago-based carrier prepares to “right size” its …
United Airlines has reportedly asked employees to consider putting themselves on the chopping block as the coronavirus crisis forces the company to cut jobs.
United chief operations officer Greg Hart urged some employees in a memo to consider leaving their gigs under a “voluntary separation” deal as the Chicago-based carrier prepares to “right size” its workforce, CNN reported Monday.
The warning came despite United and other airlines receiving hefty federal bailouts to keep workers employed while the global pandemic depresses demand for travel.
“We recognize that this is painful news, but it provides what we believe is the most accurate assessment of what lies ahead for our company,” Hart said, according to CNN.
United indicated in two other memos that it plans to axe 30 percent of its administrative and management employees along with 30 percent of its pilots in October, Reuters reported Monday. The airline reportedly employs about 12,250 pilots and some 11,500 management and administrative staff.
United did not immediately respond to a request for comment Tuesday morning.
United is due to receive a roughly $5 billion lifeline from a federal “Payroll Support Program” meant to shore up airlines during the coronavirus crisis. The pandemic has forced carriers to slash their flight capacity, park planes and cut spending.
But the aid only guarantees that United won’t furlough US employees or cut their pay before Sept. 30, company officials have said. The package includes a $3.5 billion grant and a $1.5 billion loan.
“We anticipate spending billions of dollars more than we take in for the next several months, while continuing to employ 100 percent of our workforce,” United spokesman Frank Benenati told Reuters. “That’s not sustainable for any company.”
United’s stock price has plunged more than 71 percent this year as the virus crisis roiled the global travel industry. Shares in the company dropped 5.1 percent to $25.26 Monday after investment maven Warren Buffett revealed his company Berkshire Hathway had dumped its stakes in airlines.
The pandemic has also slammed other major US carriers, including Delta, American and Southwest, whose share prices have plummeted 61.4 percent, 65.7 percent and 48.8 percent so far this year, respectively.
