American Airlines (AMR) is preparing to cut 7,000 employees (8% of its total workforce) by the end of the year. This sounds drastic, but barring a rapid drop in the price of oil, it might not be enough to stave off eventual bankruptcy. NYT:
The job cuts, which appear to be twice as big as those announced so far by any other carrier, could affect as many as 900 flight attendants.
In a message posted on its Web site, the Association of Professional Flight Attendants said Wednesday that it had received notice from American of its intent to lay off union members with the least seniority. The exact number will depend on how many older workers agree to take voluntary retirement packages, the airline told the union.
AMR stock has now dropped below $5, for a market cap of just over $1 billion.
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