Delta Air to cut jobs due to bankruptcy
The third largest airline carrier in the United States Delta Air Lines Inc has announced plans, which could result in as many as 9,000 job cuts. This is around 17 percent of their workforce as the company overhauls its business and lowers costs in bankruptcy. Delta Air Lines has planned to cut costs by as much as $3 billion annually by the end of 2007 in addition to the planned $5 billion already targeted to be cut by the end of next year.
The company released this information through a press release on Primezone today. Some more bad news is there in the form of a possible pay cut for the frontline workers by between 7 percent and 10 percent. However, this would exclude the workers making less than $25,000 a year.
Delta Air had announced similar plans last year when they decided to cut down their workforce by 7,000 jobs in an effort to stem losses. They provided $1 billion in annual concessions over five years as part of the turnaround plan. However, things are still bad as the company made losses of around $10 billion over the past four years. Chief Executive Gerald Grinstein would himself take a price cut of 25% with other senior executives accepting a 15 percent reduction.