American Airlines has sent notices of possible layoffs to 11,159 Transport Workers Union-represented employees in the USA.
The government mandated Worker Adjustment and Retraining Notification (Warn) notices were sent to all of the employees that could be affected, with a majority concentrated in the Dallas-Fort Worth and Tulsa, Oklahoma, areas, according to a letter sent to the TWU by the airline on 13 September.
"Regrettably, reducing our costs requires that we must make a number of tough decisions," said Laura Einspanier, vice-president of employee relations at American, in the letter. "Several of these very difficult decisions involved modifying work rules so as to allow American Airlines to outsource certain work across the American Airlines system, which will result in a reduction in force."
The Fort Worth-based airline says that the actual reductions are expected to be less than 40%, or about 4,400 employees, of the total number of notices sent.
"We have been able to further reduce that number [of layoffs] through early out incentives and gaining greater clarity on staffing projections," says American. "We currently expect to furlough approximately one-third of the original estimate - and it's possible that number may improve further."
The final number of layoffs will not be determined until the completion of its early out, and bump and roll programmes, which is expected by the end of the year, says the carrier.
Early out allows employees to retire early for a one-time compensation. Bump and roll is a programme that allows employees in management who have had their position eliminated to take a lower position within the company.