Planned Workforce Reduction Starting October 1
[Asia Economy Reporter Kwon Jae-hee] United Airlines in the United States has notified about 16,000 employees of unpaid leave, the Wall Street Journal (WSJ) reported on the 2nd (local time).
According to the report, United Airlines notified a total of about 16,000 employees, including 6,920 flight attendants, 2,850 pilots, and 2,260 airport staff.
This workforce reduction is scheduled to begin on October 1.
Earlier in March, the airline industry received $32 billion (approximately 38 trillion KRW) in federal government support for six months as salary, on the condition that there would be no layoffs until September 30.
The expiration date for this support is October 1, and mass layoffs by airlines are expected accordingly.
United Airlines plans to recall employees who were placed on unpaid leave once the COVID-19 pandemic is resolved and air travel demand increases.
United Airlines expects that air travel demand will recover to about 50% of pre-COVID-19 levels only after vaccines are widely distributed.
Before the COVID-19 pandemic, United Airlines employed about 95,000 people. As air travel demand was hit hard by COVID-19, United Airlines reduced 7,000 employees and saved labor costs for about 20,000 people through unpaid leave and job sharing.
Meanwhile, American Airlines has also announced plans to lay off about 19,000 employees starting October 1.
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