CALMSP From United States of America, joined Aug 2003, 4129 posts, RR: 8 Posted (10 years 7 months 3 weeks 5 days 1 hour ago) and read 2150 times:
unfortunately we will be announcing an additional 425 positions today on top of the previously 253 reservation positions. Most of the 425 positions will be management and clerical positions. Full press release will be out any time now.
okay, I'm waiting for the rich to spread the wealth around to me. Please mail your checks to my house.
Slider From United States of America, joined Feb 2004, 7015 posts, RR: 33
Reply 1, posted (10 years 7 months 3 weeks 5 days 1 hour ago) and read 2089 times:
Here tis- not a drastic announcement per se, as most of the personnel reductions were thru unfilled positions and attrition.
CO IDENTIFIES ADDITIONAL $200 MILLION IN ANNUAL COST SAVINGS
CO today announced that it has identified approximately $200 million of additional annual pre-tax cost savings in order to further reduce the gap between revenue and expenses. These initiatives are the carrier’s latest attempt to reduce its losses, without asking for wage and benefit concessions from its employee workgroups. Coupled with the carrier’s previously announced revenue generation and cost savings initiatives, the total contribution of these efforts is expected to result in approximately $1.1 billion in pre-tax run-rate benefits.
“These are difficult times for all of us,” Gordon said. “We continue to struggle to identify additional ways to lower our costs as continued losses jeopardize our survival. Our employees are focused on ensuring our long-term viability. However, unless the revenue environment improves dramatically, we will need to reduce wages and benefits to compensate for the continued losses.”
The cost savings items are expected to provide approximately $125 million of pre-tax benefits in 2005 and, when fully implemented by 2007, a run-rate annual pre-tax benefit of approximately $200 million.
These cost savings include a reduction of approximately 425 positions through staff reductions, attrition and the elimination of unfilled positions. A majority of these reductions involve management and clerical positions, and, together with earlier reductions in force, will result in a 24 percent reduction in the carrier’s management and clerical workforce since September 11, 2001. By comparison, over the same time period, most other work groups at CO have been affected to a lesser extent since Sept. 11, 2001: flight operations personnel have been reduced 14 percent, inflight personnel have been reduced 15 percent, mechanics have been reduced five percent, airport agents have been reduced 15 percent, and reservation agents have been reduced 26 percent.
Most of the staff reductions announced today will occur immediately, and do not include the 253 previously announced reservations position reductions.
The company will provide a package of separation benefits for affected employees. Additionally, the company will arrange job fairs and make other efforts to help affected employees transition to new positions outside the company.
In addition to staff reductions, CO is continuing to negotiate savings from numerous suppliers, demonstrating that its best business partners are willing to continue to work with the company and support it in these difficult times. The company is also continuing to pursue other savings initiatives, including a variety of fuel savings, facilities cost reductions, reductions in distribution costs, and technology-enabled productivity enhancements.
This press release contains forward-looking statements that are not limited to historical facts, but reflect the company's current beliefs, expectations or intentions regarding future events. All forward-looking statements involve risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. For examples of such risks and uncertainties, please see the risk factors set forth in the company's 2003 10-K and its other securities filings, which identify important matters such as terrorist attacks, domestic and international economic conditions, the significant cost of aircraft fuel, labor costs, competition and industry conditions including the demand for air travel, airline pricing environment and industry capacity decisions, and regulatory matters. In addition to the foregoing risks, there can be no assurance that the company will be able to achieve the targeted pre-tax contributions from the new cost-reducing initiatives, or the previously announced revenue-generating and cost-reducing initiatives, discussed in this press release, which will depend, among other matters, on customer acceptance, competitor actions, negotiations with third parties, identification of additional opportunities and other matters outside the company's control. The company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release.
Kim777fan From United States of America, joined Aug 2004, 510 posts, RR: 1
Reply 2, posted (10 years 7 months 3 weeks 4 days 18 hours ago) and read 1937 times:
Relatively good news in comparison to some of the draconian cuts at DL, AZ, and others. CO is in relatively good shape for a legacy carrier, but they too need to keep vigilant. Still, it's far better than situations at Delta, US, or United.
ILSApproach From United States of America, joined Aug 2004, 410 posts, RR: 0
Reply 4, posted (10 years 7 months 3 weeks 4 days 15 hours ago) and read 1839 times:
When are these companies, not just airlines , going to start cutting at the top?
These companies don't need a VP of this dept and a VP for that dept, etc.
Sorry but it pisses me off these fat cats!! Just seen recent article where again corporate management averaged a 27% increase in pay again in 2003.........this has been a steady 20-30% over the last few years. Meanwhile the average American worker has to fight for a less than 3% every year or for his/her job!! School teachers should be the ones making a mill a year not corporate execs.
I am kind of waiting for all of this to come to a head someday.......we're getting closer. I guess what I am saying is that look at the price of a new car it keeps going up and up and nobodys wages are. Seems the good old worker on the line keeps taking the brunt.
When will these pinheads get it? And nobody tell me that all this management is needed.............we all know who makes the real important decisions (or should) in everyday life it's the gate agent, the MX worker, the pilot, etc. These guys ever stop to think that someday they will have no employees to manage? They are managing themselves right out of business.
Sure 9/11 hurt the industry, but look at all the LLC's doing fairly well since then! Not hard to see where all the business went from the big airlines. They've lost it to the LLC's and their own massive fleets of RJ's!
777gk From United States of America, joined Jun 2000, 1641 posts, RR: 18
Reply 6, posted (10 years 7 months 3 weeks 4 days 12 hours ago) and read 1712 times:
Cuts are coming from the managerial and adminstrative end of the company; operationally we are bringing back jobs to cover our growth to the point where we are today, that being Continental handling more RPMs than prior to 9/11 operating with 9,000 less employees overall. We haven't cut out our foundation by slashing thousands of jobs at our lowest levels, but rather gone from the top-down thereby costing us less in employee morale while still achieving our cost-savings goals. As far as the "fat cats" a poster above speaks about, well, in three years Continental has cut loose nearly half of our highest-paid executives as well as eliminated many jobs at the middle level of management that has saved the company tremendous amounts of money while enhancing productivity and allowed us to move ahead with innovative technology to help make everyone's job easier.
I'm sorry to see these employees go, hopefully all will be able to get back on their feet quickly, but this is a measure that must be implemented in order for the company to survive. Continental will survive this, because we are saving the company money the right way while other airlines fail using a flawed system alienating the very employees that "make it happen" day after day. I applaud my company's efforts to let us get our jobs done, and they surely realize that we are going to do a better job without the threat of massive layoffs hanging over our heads.