American probably does have too many executives for an airline of its size. And considering the stock is down, this is probably not a bad time to cull the ranks. If everything goes well, passengers will probably not notice any changes.
Nearly five years after closing its merger with US Airways, American Airlines plans to trim its corporate bureaucracy.
In a message Tuesday to employees, American CEO Doug Parker and President Robert Isom said the company has more executives than required since it has completed most of the difficult work of integrating the two airlines.
They said most cuts will come through job elimination and attrition, but noted some executives may lose their jobs. They also said executives who have been with American at least two years and leave voluntarily will be eligible for severance.
“Our current organizational structure resulted largely from integration work that followed our merger and, as all companies do from time to time, we need to evaluate our current organization with a goal to operate more productively,” Parker and Isom said. “This work starts at the top.”
An American spokesman declined to say how many jobs will disappear. But as part of this effort, the airline is not expected to reduce the number of front-line workers who interact with customers.
Most of the new cuts will focus on employees holding the title of director or above.
“This is an opportunity for team members at those levels to reflect on their current roles and their futures,” Parker and Isom said.