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United warns 36,000 US-based employees of apprehended layoffs

UNITED Airlines has notified 36,000 of its US employees, or 45 per cent of its workforce, that their jobs are at risk after federal payroll aid expires in October, reports Bloomberg

12 July 2020 - 19:00

UNITED Airlines has notified 36,000 of its US employees, or 45 per cent of its workforce, that their jobs are at risk after federal payroll aid expires in October, reports Bloomberg.

'The reality is that United simply cannot continue at our current payroll level past October 1,' the company said in a letter to employees.



Planned layoff include 15,000 flight attendants, 11,000 customer service staff and 5,500 maintenance men. About 3,700 workers have already taken voluntary separation packages.



United's warning signals the depth of potential job losses at US airlines later this year, even after the federal government provided US$25 billion in payroll support plus another $25 billion available in loans.



The carrier told employees July 6 that state quarantines prompted by a jump in coronavirus infections were jeopardising a nascent US travel recovery. United expects that travel demand will remain weak until a treatment or vaccine is widely available.



United's rivals are also studying major job cuts. Last week, American Airlines said it had 20,000 more employees than needed. Delta said 2,600 pilots might have to go.


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