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Jun14
United Airlines Cutting 1,000 Jobs
Rob Willers June 14, 2006
Know More:
Many experts have continued to stress that United Airlines must cut more in order to turn a profit.  Well today United is cutting 1,000 salaried jobs at the airline.  The only good news is that none of the job cuts are coming from the employees who actually work on the ground, which include flight crews, ground workers, and other front line employees. 
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 United Airlines will lay off more than 10 percent of its management and other salaried workers, the company's chief executive told investment analysts Wednesday.

"We'll be eliminating at least 1,000 salaried and management positions out of approximately 9,400 by year's end," Glenn Tilton said during a presentation given at a Merrill Lynch global transportation conference.

The jobs will be cut by year's end, Tilton said. It is the first large-scale layoff for Elk Grove Township-based United since the carrier's exit from bankruptcy protection in February.

The job cuts are part of a $100 million effort to reduce general and administrative expenses. The airline plans to cut costs by $400 million overall, with increases in efficiency. It plans to reduce various costs, including less spending on advertising and marketing.

 Tilton originally announced plans to reduce costs after first quarter results were announced last month, but this was the first time he specified how much the management ranks will be thinned.

Chicago Tribune

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