American Airlines said Tuesday it will cut a “small” number of management and support roles, mostly at its Fort Worth headquarters, in an effort to recalibrate its workforce to match current needs.
The Airline said in a statement that the layoffs
“will help us optimize our performance and become even more efficient across the organization.” It also said it plans on investing in other areas that support its “long-term business objectives.”
The lay-offs were primarily at its Fort Worth headquarters which will help it become more efficient across the organisation, the airline said.
The carrier has previously said it plans to generate more than US$750 million in cost savings by the end of this year, thanks to its business re-engineering efforts.
Airlines across North America have been trimming corporate roles to reign in heightened costs and shield margins amid a normalized travel environment after a post-pandemic surge.
It's also being reported that American Airlines is reportedly outsourcing many roles to a major job hub in Hyderabad, India.
Last month, Canadian carrier Air Canada cut about 400 management positions, or roughly 1% of its workforce.
In September, Lufthansa Group said it would shed 4,000 jobs by 2030, most of them in Germany. Southwest Airlines announced earlier this year it was slashing 15% of its corporate workforce, its first major layoffs in 54 years.
Carriers, including American, hired in volumes after the Covid-19 pandemic to meet a surge in travel demand as passengers returned to the skies. But that demand slowed earlier this year amid wider economic uncertainty, prompting major U.S. airlines to reduce their flight schedules and revise or withdraw their profit outlooks for the year.
