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Delta Airlines is planning to offer early retirement and buyout packages to employees in an effort to cut costs as COVID-19 slashed the air travel by almost 95%.
“While we never dreamed just a few months ago that we would be talking about a smaller Delta – this was expected to be a year of growth, after all – this is the reality we’re facing,” said CEO Ed Bastian in a note to staff,.. “Every voluntary departure helps to protect the jobs of those who most need them.”
$25 billion federal aid prohibited U.S airlines from laying off or cutting the pay rates of any workers through Sept. 30
But carriers are finding ways to cut costs and warning staff to expect worst yet to come.
American Airlines said it plans to reduce its management and administrative employees by 30%, or about 5,000 people.
United Airlines also planing to cut its workforce by 30%.
The airlines are urging employees to accept buyouts or early retirements to avoid involuntary cuts.
Delta had about 91,000 employees as of the end of 2019.