“American Airlines” Plans to Cut 5,000 Jobs, Saying Bankruptcy Is Not an Option!

Nearly 40,000 American Airlines employees had been affected by the low demand in the airline industry amid the outbreak of coronavirus. Now, the airline is planning to cut 5,000 jobs as the company is taking the toll from the virus outbreak.

 

Since the outbreak, nearly 40,000 employees of American Airlines have gone on leave, worked with less hours or retired early.

The recent report indicated that the company is planning to cut its management and administrative staff by 30% as the business needs to reduce the cost structure, which lies heavily on the cost of compensation and benefits.

 

However, American Airlines affirmed that bankruptcy is not an option. “I don’t think you should view bankruptcy as a finance tool. I think that’s failure. I think our job is to preserve shareholder value. And that’s what we’re going to do. That’s what we’ve done since we’ve been working here. That’s what we’re going to do. We don’t look at that as an option,” said American Airlines CEO Doug Parker

 

American Airlines, Inc. is a major American airline headquartered in Fort Worth, Texas. It is the world’s largest airline when measured by fleet size, scheduled passengers carried, and revenue passenger mile