CNBC: American Airlines warns 25,000 employees about potential job cuts

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CNBC reports:

American Airlines on Wednesday warned about 25,000 front-line employees — close to 20% its workforce — about potential furloughs, the latest carrier to prepare staff for job cuts as surges in coronavirus cases dash hopes for a quick rebound in travel demand.

The airline also urged employees to take new extended leaves that can last up to two years or early retirement packages to get as many people off payroll as possible before having to involuntarily cut their jobs.

American’s revenue in June was down more than 80% than a year ago, CEO Doug Parker and President Robert Isom said in a note to staff.

“And with infection rates increasing and several states reestablishing quarantine restrictions, demand for air travel is slowing again,” they wrote.

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