US United Airlines May Lay Off 36,000 Employees... First Case Among Major Airlines

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] United Airlines in the United States is carrying out large-scale layoffs due to the impact of the novel coronavirus disease (COVID-19).

According to the Wall Street Journal (WSJ) on the 8th (local time), United Airlines reportedly notified about 36,000 employees that they could be subject to unpaid leave starting October 1.

This corresponds to about 38% of the total 95,000 United Airlines employees and 45% of the U.S.-based workforce.

By job category, there are approximately 15,000 flight attendants, 11,000 customer service staff, 5,500 maintenance personnel, and 2,250 pilots.

United Airlines stated, "Not all of these personnel will be laid off, and the final scale will be determined in August considering voluntary retirement and other circumstances."

WSJ reported that this is the first case among major airlines receiving billions of dollars in support from the U.S. federal government to cover employee salaries until September this year to proceed with large-scale layoffs.

United Airlines is currently facing a daily loss of $40 million (approximately 47.8 billion KRW) due to decreased air travel demand caused by the COVID-19 crisis.

Meanwhile, American Airlines also mentioned that up to 20,000 employees are in excess and hinted at possible layoffs.