Delta doubles job cuts

MarkE

MarkE

Greetings, Professor Falken
Bummer.

http://money.cnn.com/2008/06/13/news/companies/delta_jobs.ap/index.htm?eref=rss_topstories

ATLANTA (AP) -- Delta Air Lines Inc. plans to cut twice as many jobs as the original goal of 2,000, it stated in March, when it offered voluntary severance payouts to more than half its work force.

A spokeswoman for the Atlanta-based carrier, Betsy Talton, said Friday that roughly 4,000 people took the package, and Delta will accept all the volunteers. The employees are from the mainline airline and Delta's information technology subsidiary, Talton said. Most will leave the company in the fall, she said.

Talton said on May 30 that more than 3,000 people took the package. She said Friday the earlier number was not final.

Delta said on March 18 that it would offer voluntary severance payouts to roughly 30,000 employees. Executives said then that the airline's goal was to cut 2,000 frontline, administrative and management jobs through the severance program, attrition and other initiatives.

The company said it would accept more job cuts, if more than 2,000 employees took voluntary severance.

One part of the severance program was for employees who were already eligible for retirement, or for those whose age and years of service added up to at least 60, with 10 or more years of service. The other part of the program was an "early-out" offer for frontline employees - such as flight attendants and gate and ticket agents - with 10 or more years of service and for administrative and management employees with one or more years of service.

Delta had 55,044 total full-time employees as of the end of last year. Excluding the current round of cuts, Delta has announced it would cut up to 33,000 jobs since 2001.

Several major airlines in recent months have announced they are cutting domestic capacity, deferring plane orders or shedding jobs because of record fuel prices.

Based on the March 18 announcement, Delta's plans called for a reduction in domestic capacity of 10% by August, 5% more than under its previous business plan. Ed Bastian, Delta's president and chief financial officer, said June 3 after Delta's annual meeting in New York that "there will be more pruning" in terms of domestic capacity cuts. He did not provide a new goal, though he said further capacity cuts would be smaller than those previously announced.

Asked if there would be further job cuts beyond the 3,000 Delta (DAL, Fortune 500) had planned to cut at the time, Bastian said bluntly, "No. That's not the plan."

Talton said Friday that the airline currently has no updated guidance to announce regarding further domestic capacity cuts beyond the 10% reduction previously announced
Click to expand...
 
I don't know, this could be a good thing. It lets Delta go leaner than originally planned, and those that wanted out are able to take the package and move on with life. It's a lot better than "Sorry, your services aren't needed. Here's $500."
 
Yea, its not as bad as it sounds. They didnt double the amount of people they have to let go. Just double the amount of people they needed to leave decided to accept the severance package.

-Rob
 
Basically what happened was they needed to cut 2,000 people. They offered it to more than that in order to get theat many. Thye ended up getting over 4,000 volunteers. So the wizards at VA Ave. though it would be the best thing to do to just let all the vounteers take the package instead of having to go and kick more people to the curb.
 
thesoonerkid said:
just goes to show how much excess fat a lot of these companies carry
Click to expand...
No, that just shows how much more work will be added to those who are left, without increasing wages to match the incresed workload. Say you have a department that normally employs 5 workers to accoplish that depatments tasks. You let go three from the department. Now the two remaining employees are left to do the work of 5 and get the same wages as they were when there were five. The company saves money by reducing the payroll expenditures and not having to reduce the work output.
The fat lies at the top not the bottom!;)
 
Let's see, get rid of lots of people who have been with the company 20 years and are maxed out on pay scales, and if needed, replace them with new hires on lower pay scales.
 
Speaking of job cuts and cutbacks...

I was flying out of MCO for the first time again in about 4 months. I call the DL Ramp tower at Airside 2 for pusback, but got no response. Tug driver tells us the ramp tower has been closed, for about 3 months now, due to cutbacks. He also said they are planning on reducing ramp towers in ATL! That would be a nightmare:D
 
H46Bubba said:
Basically what happened was they needed to cut 2,000 people. They offered it to more than that in order to get theat many. Thye ended up getting over 4,000 volunteers. So the wizards at VA Ave. though it would be the best thing to do to just let all the vounteers take the package instead of having to go and kick more people to the curb.
Click to expand...
i actually see it as a good thing. more than enough volunteers will probably save people from furlough later. those people probably wanted to get out retirement, stock options intact.
 
You must log in or register to reply here.
Back
Top