American Airlines to lay off 25,000 employees due to Coronavirus pandemic

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American Airlines to lay off 25,000 employees due to Coronavirus pandemic
Photo Credit: American Airlines

American Airlines on Wednesday cautioned around 25,000 front-line representatives, who constitute nearly 30 percent of its US workforce, about the risk of losing their jobs as the coronavirus infection widespread dashes hopes for a fast bounce back in travel demand.

The notification to the employees is mandated under the Worker Adjustment and Retraining Notice Act which requires bosses to inform staff about conceivable cutbacks or transitory furloughs by and large 60 days in advance.

The reductions would take effect after restrictions tied to U.S. payroll aid expire at the end of September, and the final cuts could be lower depending on how many workers choose (by July 31) a newly offered incentive plan with early out and leave options. 

Earlier during the year, airline companies are denied from cutting occupations or the pay rates of laborers through Sept. 30 beneath the terms of $25 billion in government finance support. The employees who have been told that their employments are at chance won’t essentially be laid off.

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