Thu, Sep 02, 2004
Airline Says It May Cut Ten Percent Of Workforce
As bankrupt United Airlines
struggles to emerge from Chapter 11 by the end of the year, a new
report from the London Financial Times says the company plans to
cut another 6,000 jobs -- about ten percent of its total
The newspaper reported CEO Glen Tilton planned to present the
idea to his board of directors at the end of this month.
United isn't saying what it plans to do to climb out of the
financial hole it's in. Spokesman Jeff Green told the Denver Rocky
Mountain News, "We have said all along we're going to look at
everything with regard to further cost cutting. However, no final
decisions have been made about how the costs will be cut."
But a taped message from UAL management to its workers said the
airline is trying to cut $625 million in annual operating costs by
reducing call center, maintenance, airport operations and commuter
partner agreements, according to the Denver paper.
"The savings we expect from these initiatives are a good start
toward reaching the cost structure we must have, but even with this
intense focus on cost reduction, it isn't enough," United COO Pete
McDonald said in the message. "I know this is hard for all of us.
Everyone has made sacrifices. And the truth is, it will probably
become even more difficult as we go forward."
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