DALLAS (CBSDFW.COM) – According to an internal memo, AMR says 20 percent of its senior leadership will be laid off as American Airlines continues its third phase of reorganization since declaring bankruptcy.
Five employees named by the company who are retiring include American Airlines’ President of Cargo David Brooks, who’s been at that post for 16 years; front office leader Mark DuPont, a 29-year American veteran; Information Technology Vice President Susan Garcia, a 25-year American employee; Technology front-man Andrew Watson, who has been with the company for more than 10 years; and Vice President of Operations, Finance and Strategy Planning Doug Herring, who will be “working on special projects through the end of the year.”
AMR spokesman Tim Smith says this is part of the third phase of the organization redesign.
“It’s just a matter of restructuring and making the management levels fewer people, more streamlined,” Smith said.
In that internal memo, AMR says Human Resources Vice President Jeff Brundage will also be leaving –– current Vice President of Employee Relations Denise Lynn will take up his former post.
Brundage has been one of the lead negotiators at the labor bargaining table. The open positions will fold into existing ones, according to a press release issued after the announcement.
“A few consolidated or modified positions … will bring about new ways of doing things in all functions of the company. For example, the position of Vice President of New York and International, combines two previously separate positions,” the release reads.
While the company says more cuts at lower levels will be made, the front office layoffs are only a good start, said Leslie Mayo, a spokeswoman of the union that represents flight attendants.
“Twenty percent probably isn’t enough considering how much these folks are paid, as well as what they’re paid to leave,” Mayo said.
Allied Pilots Association spokesman Howie Shack says the problem isn’t solvable simply by shifting management roles.
“What we are looking for is changes to the attitude of the company in the courtroom,” he said. “We want to see that the company recognizes the value pilots and other employees bring to the table and bring to the company and changing the HR people is simply not going to be enough.”
The Transport Workers Union has not returned requests for reaction.
The announcement comes on the same day AMR says it lost more than $800 million in March because of restructuring charges.