American Airlines announced on Tuesday that it will cut a “small” number of management and support roles, mostly at its Fort Worth, Texas headquarters. The airline said the decision is to “recalibrate its workforce to match current needs” and “optimize our performance and become even more efficient across the organization.” A company statement added that American will continue to invest in other areas that support its “long-term business objectives.”
The airline did not share the exact number of job cuts, and a company spokesperson declined to give more details, as per the report by ABC News. After the pandemic, American and other airlines hired aggressively to meet the huge travel demand when people started flying again. However, travel demand dropped earlier this year because of economic uncertainty, pushing major U.S. airlines to cut flight schedules and revise or withdraw profit outlooks.
A company spokesperson told The Dallas Morning News that the job cuts are aimed to “right-size for the work we do today.” Matt Miller, American Airlines spokesperson, said the affected positions are “primarily at our Fort Worth headquarters” and will “help us optimize our performance and become even more efficient across the organization.”
American Airlines operates its main hub at DFW International Airport, one of the largest airports in the U.S. The layoffs come as American Airlines is trying to turn its business around and compete with rival U.S. carriers like Delta Air Lines and United Airlines.
Last month, the airline reported record third-quarter revenue of $13.7 billion but still had a net loss of $114 million, as stated by Dallas News. The company is now focusing on premium business products, such as Flagship Suites on long-haul international flights, to improve profit margins and strengthen its position.
No, American Airlines is not shutting down; it is only cutting some corporate jobs to improve efficiency and focus on long-term growth.
Q2. Why is American Airlines laying off employees?
American Airlines is laying off some management and support staff to adjust its workforce after travel demand slowed and to streamline operations.
The airline did not share the exact number of job cuts, and a company spokesperson declined to give more details, as per the report by ABC News. After the pandemic, American and other airlines hired aggressively to meet the huge travel demand when people started flying again. However, travel demand dropped earlier this year because of economic uncertainty, pushing major U.S. airlines to cut flight schedules and revise or withdraw profit outlooks.
Airline job cuts after travel slowdown
In comparison, Lufthansa Group said in September it would shed 4,000 jobs by 2030, most of them in Germany. Southwest Airlines also announced earlier this year that it would slash 15% of its corporate workforce, marking its first major layoffs in 53 years.A company spokesperson told The Dallas Morning News that the job cuts are aimed to “right-size for the work we do today.” Matt Miller, American Airlines spokesperson, said the affected positions are “primarily at our Fort Worth headquarters” and will “help us optimize our performance and become even more efficient across the organization.”
American Airlines future plans and focus
Miller added, “We remain focused on continuing to invest in areas that support American’s long-term business objectives, and these targeted investments will be made thoughtfully to position our airline for continued success.”American Airlines operates its main hub at DFW International Airport, one of the largest airports in the U.S. The layoffs come as American Airlines is trying to turn its business around and compete with rival U.S. carriers like Delta Air Lines and United Airlines.
Last month, the airline reported record third-quarter revenue of $13.7 billion but still had a net loss of $114 million, as stated by Dallas News. The company is now focusing on premium business products, such as Flagship Suites on long-haul international flights, to improve profit margins and strengthen its position.
FAQs
Q1. Is American Airlines shutting down?No, American Airlines is not shutting down; it is only cutting some corporate jobs to improve efficiency and focus on long-term growth.
Q2. Why is American Airlines laying off employees?
American Airlines is laying off some management and support staff to adjust its workforce after travel demand slowed and to streamline operations.
