AMR cutting jobs to offset fuel prices

By Kyle Peterson CHICAGO (Reuters) - AMR Corp (AMR.N: ), parent of American Airlines, will reduce its employee headcount by about 8 percent as it cuts capacity to offset record-high fuel prices, the company said in an internal memo on Wednesday. In a letter from Jeff Brundage, AMR's senior vice president in charge of human resources, job cuts would be in line with the overall system capacity reductions, which are expected to total 8 percent. "While we are still working through the specific impact to employee work groups, both voluntary and involuntary, employee reductions commensurate with the overall system capacity reductions are expected company-wide as we reduce the size of the airline," Brundage said. AMR, which currently has about 85,500 employees, has said it would reduce domestic capacity by 11 percent to 12 percent... [read full story]                    

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