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AA Parent Company Circulates Internal Memo Hinting Of Layoffs

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DFW INTERNATIONAL AIRPORT (CBSDFW.COM) – On Tuesday, the CEO of American Airlines’s parent company, The AMR Corporation, issued an internal memo that hinted at layoffs.

In the letter, AMR CEO Tom Horton wrote, “Today, we are announcing an initiative through which we will redesign American’s management structure to ensure we are positioned for a successful future.”

The memo goes on to say: “Since we will be refining the organization and getting leaner, we will obviously end the process with fewer people.”

Economists and industry experts at universities in North Texas say they expected the message. AMR filed for Chapter 11 bankruptcy protection in late November.

“This process is inevitable, it has to happen,” said Southern Methodist University economist and professor Nick Davis.

The company’s CEO stopped short of using the word layoff, but Davis says employees are bracing for change and reading between the lines.

“Probably means lower wages for a lot of the employees or all of the employees, and some people are going to lose their job,” said Davis.

Those who work for the airline carrier are anxious to know how the streamlining will affect their families, although none CBS 11 spoke to Tuesday wished to use their names.

Political professor Allan Saxe at the University of Texas at Arlington says the state’s economy is strong enough to absorb the layoffs, if that is, in fact, what Horton is referring to in the memo.

“If American Airlines had been in another state that was not as prosperous as Texas, I think it would have had a much more significant ripple effect,” he said.

AMR employs an estimated 25,000 people in the region. Roughly 78,000 are employed worldwide.

Read the whole memo below: 

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