United Airlines decides to cut 4,550 more employees
2008-07-23 13:33:28 (GMT) (Caymanmama.com - Business News)Reno, Nevada (CaymanMama.com) — United Airlines reported a sharp quarterly loss on Tuesday but at the same time, gave its investors reasons to celebrate as the airline decided to cut 4,550 jobs along with beefing up the cash balance by about $1.2 billion. The effort of the carrier has sent the shares of the airline soaring to about 69% which will help the reversal of a worsening financial situation.
As reported by the chief executive of the United Airlines, Glenn Tilton, “Now, more so than ever before, it is important that we think differently . . . and take aggressive actions to offset these unprecedented fuel prices and strengthen our competitiveness.”
Earlier, the airlines decided to announce the elimination of about 2,450 positions through layoffs, attrition and furloughs. But on Tuesday, the carrier declared that the number of eliminations would go up and it would reach around 7,000 jobs by next year. The increased cut off in the number of jobs represents around 13% of the total workforce slated to lose their jobs. It is still unclear how the additional job cuts will affect the second largest center of United Airlines in Denver. The job cuts will amount to approximately 700 jobs. However, the carrier mentioned that the company has not yet decided what jobs are to be cut.
The president of the InterVistas-GA2, the consulting firm, Jon Ash, reported that when the seats and flights are taken out of the main system, one needs to take the people out as well. United has also extended and modified the agreements of the credit cards with the Chase Bank and the Airlines will be receiving an infusion of about $600 million from the sale of flier miles to the Bank. The company will also be dealing in the enhancement of cash flow by about $200 million in the coming two years.
CaymanMama.com - Press Release Distribution Service
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