Management-level layoffs are in the works as American Airlines works to slim down five years after it merged with US Airways.
“While much of this restructuring will happen at the director and above level, we will also take the opportunity to look at our non-frontline facing management structure,” said a note signed by CEO Doug Parker and AA’s president, Robert Isom.
“The majority of improving efficiency at those levels will happen through the elimination of open positions and attrition. However, as leaders take the time to look at their organization, there is the potential for some involuntary departures as well,” the note continued.
According to CNBC, at the end of 2017 American Airlines had 126,000 full-time equivalent employees, a 3.5 percent increase from a year earlier.
According to Parker, American has more directors and above leaders than what the company needs for the long term.
The departments that could be affected will be information technology, marketing, and revenue management. The airline’s unionized pilots, mechanics, flight attendants, and other customer-facing positions that make up most of the workforce will not be part of the process, American Airlines told CNBC.
It is still unclear the amount of employees the airline would like to cut back on. Employees at the director level or above will be given severance packages.
This year American Airline’s stock is down by more than 20 percent and like many airlines it is trying to cut costs after an increase in fuel prices, reports CNBC. Jet-fuel prices have gone up 15 percent in 2018.