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American Airlines Issues Warning To 25,000 Employees About Possible Job Cuts

American Airlines (AAL) on Wednesday said it informed about 25,000 employees, which is about 20% of its total workforce, about possibility of furloughs, as airline operators around the globe continue to struggle due to the coronavirus pandemic.

The airline has issued WARN notices to 37% or 9,950 of American Airlines' flight attendants, 18% or 2,500 of its pilots, and 22% or 3,200 maintenance workers and 26% or 4,500 fleet service employees.

American Airlines has also asked employees to take new extended leaves program that can last up to two years or early retirement packages before having to involuntarily cut their jobs.

"Our passenger revenues in June, while we believe are better than others in the industry, were more than 80% lower than June 2019. And with infection rates increasing and several states reestablishing quarantine restrictions, demand for air travel is slowing again," CEO Doug Parker and President Robert Isom said in a letter issued to staff.

Meanwhile, airlines are prohibited from cutting jobs or pay rates of workers through September 30 under the terms of $25 billion in federal payroll support.

The Worker Adjustment and Retraining Notification Act requires employers to notify staff about possible layoffs or temporary furloughs generally 60 days in advance.

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