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AA Cuts 20 Percent Of Senior Leadership Costs  
User currently onlineLAXdude1023 From India, joined Sep 2006, 7810 posts, RR: 25
Posted (2 years 7 months 3 weeks 4 days 9 hours ago) and read 6744 times:

Article below:

http://www.nbcdfw.com/news/business/...or-Leadership-Costs-149692135.html

[Edited 2012-05-01 11:08:30]


Stewed...Lewd...Crude...Irreverent...Belligerent
13 replies: All unread, jump to last
 
User currently offlineUnited727 From United States of America, joined Nov 2010, 412 posts, RR: 1
Reply 1, posted (2 years 7 months 3 weeks 4 days 7 hours ago) and read 6492 times:

Damn, I was hoping that meant that Horton was going to work for a $1/salary this year!! Guess Not....


Looking for the impossible way to save those dying breeds!!!!
User currently offlinechepos From Puerto Rico, joined Dec 2000, 6235 posts, RR: 11
Reply 2, posted (2 years 7 months 3 weeks 4 days 7 hours ago) and read 6463 times:

Can they take Tommy with them whle they are at it ?

Regard,

Chepos



Fly the Flag!!!!
User currently offlinelightsaber From United States of America, joined Jan 2005, 13549 posts, RR: 100
Reply 3, posted (2 years 7 months 3 weeks 4 days 6 hours ago) and read 6182 times:
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While no one likes layoffs, AA needs to do more than they have yet announced. 20% isn't enough. They need to remove a layer (or two).

That isn't fun. My current employer is in the process of removing two layers of management. (Yea... too much burden. Oops). It is a scary and painful process. But it had to be done. We couldn't win bids as the 'management costs' per engineer were far too high. Every part of AA must earn their keep. I wish they didn't need to lay off anyone...

Too many US companies are becoming top heavy. Needless management layers help those at the top understand the business, but at a heavy cost. Airlines need to be lean. There needs to be an easy to identify business reason to keep a position or department.

I know 20% is the overall goal... To be blunt, I do not see the value of half of AA's corporate overhead costs. I'm not saying cut costs 50% (that would cripple AA in the short/mid-term). But set a higher goal than 20%. Thirty VPs (plus Executive VPs and such) is far too many. Cutting 5 isn't enough.

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently onlineripcordd From United States of America, joined Apr 2000, 1197 posts, RR: 1
Reply 4, posted (2 years 7 months 3 weeks 4 days 6 hours ago) and read 6115 times:

You know the funny thing they filed back in Nov 6-months ago why did it take sooo long for them to take a paay cut? They complained to the judge everday that the unions do not take a paay cut it costs them blah blah xxxx amount of dollars then why did it take them 6 months? Are the managment union? This should have been done day 2 of BK....

User currently offlineSydscott From Australia, joined Oct 2003, 3189 posts, RR: 20
Reply 5, posted (2 years 7 months 3 weeks 4 days 5 hours ago) and read 5933 times:

Quoting lightsaber (Reply 3):
Needless management layers help those at the top understand the business, but at a heavy cost.

Wouldn't you expect those at the top to already understand the business? If the don't then what the hell are they doing there to start with!


User currently offlineusdcaguy From United States of America, joined Jan 2004, 1010 posts, RR: 2
Reply 6, posted (2 years 7 months 3 weeks 4 days 4 hours ago) and read 5799 times:

Quoting lightsaber (Reply 3):
Too many US companies are becoming top heavy. Needless management layers help those at the top understand the business, but at a heavy cost. Airlines need to be lean. There needs to be an easy to identify business reason to keep a position or department.

How many airline managers does it take to screw in a light bulb? Five. One to request a PowerPoint on the subject, one to tell the analyst to put it together, one to rewrite the slides written by the analyst, one to write a PowerPoint on how to save money by firing managers and analysts who write PowerPoints and one to tell an admin to place a work order with Facilities.


User currently offlinechepos From Puerto Rico, joined Dec 2000, 6235 posts, RR: 11
Reply 7, posted (2 years 7 months 3 weeks 4 days 4 hours ago) and read 5646 times:

Quoting usdcaguy (Reply 6):
Quoting usdcaguy (Reply 6):
How many airline managers does it take to screw in a light bulb? Five. One to request a PowerPoint on the subject, one to tell the analyst to put it together, one to rewrite the slides written by the analyst, one to write a PowerPoint on how to save money by firing managers and analysts who write PowerPoints and one to tell an admin to place a work order with Facilities.

And 10 managers to come up with the cornerstone strategy.

Regards,

Chepos



Fly the Flag!!!!
User currently offlineordjoe From United States of America, joined Aug 2010, 749 posts, RR: 0
Reply 8, posted (2 years 7 months 3 weeks 3 days 16 hours ago) and read 4146 times:

Quoting Sydscott (Reply 5):

One would think but no, it is every company. Those people think alike and a lot of companies have far too much management.


User currently offlineckfred From United States of America, joined Apr 2001, 5310 posts, RR: 1
Reply 9, posted (2 years 7 months 3 weeks 3 days 10 hours ago) and read 2356 times:

It's not uncommon for a cut in senior executives, and then the remaining senior executives then do futher reductions of their areas of responsibility. A senior VP or executive VP may be told that he has to reduce his headcount by X number of people or reduce his payroll by $X.

This may be the start of futher reductions in white-collar management.

Some companies will announce every round of lay-offs, while others wait until every round of lay-offs is complete, and then announce the total reduction.

AA may have just cut the number of positons at the top. Now, the remaining ones will go through and make further cuts.

My wife has worked for several Fortune 500 companies. It's very, very rare to cut senior and executive VPs at the same time that people 4,5, or 6 levels down on the org. chart are let go.

But, this begs the question. Is AA top-heavy? Does it have too many layers of management?

I don't know the answer. But, I doubt that it's anything like GM was, when it would take 6 or 7 levels of management to approve adding one color to the choices for the mid-size cars sold in the U.S. and Canada.


User currently offlinelightsaber From United States of America, joined Jan 2005, 13549 posts, RR: 100
Reply 10, posted (2 years 7 months 3 weeks 3 days 10 hours ago) and read 2181 times:
Support Airliners.net - become a First Class Member!

Quoting Sydscott (Reply 5):
Wouldn't you expect those at the top to already understand the business? If the don't then what the hell are they doing there to start with!

In day to day operations of large groups, its easier to understand what is going on if multiple sub-managers summarize the details. However, that adds cost and communications delay. At some point one has to just let the business run missing some information due to the expense of 'communication paths' in large companies.

Its one thing to understand an industry, its another to understand how the business is working that day/week/month/quarter/year.

Quoting usdcaguy (Reply 6):
How many airline managers does it take to screw in a light bulb?

  

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlinejfk777 From United States of America, joined Aug 2006, 8505 posts, RR: 6
Reply 11, posted (2 years 7 months 3 weeks 3 days 9 hours ago) and read 2082 times:
Support Airliners.net - become a First Class Member!

Lets hope AA isn't cuttimg muscle in the name of cutting "FAT".

User currently offlinePRAirbus From Puerto Rico, joined Apr 2005, 1144 posts, RR: 1
Reply 12, posted (2 years 7 months 3 weeks 3 days 9 hours ago) and read 1910 times:

The tsunami for the unions will finally come on June 6th when the judge rules about AA contracts! :O After that step, another round of job cuts will most likely take place. I hope AA management is smart enough to delay immediate imposition of 1113 after the peak of the summer high season. Doing so right during high season may cause havoc in its operations since employees will start to grasp and react to 1113. Tough times for AA!  

User currently offlineBCEaglesCO757 From United States of America, joined Mar 2011, 242 posts, RR: 2
Reply 13, posted (2 years 7 months 3 weeks 3 days 7 hours ago) and read 1652 times:

Quoting lightsaber (Reply 3):
Needless management layers help those at the top understand the business, but at a heavy cost.

Thats the problem. Too many at the top in the airline industry with NO CLUE.

A little late to be learning.

Not saying they have to,but hiring from within with employees who may have started out at the ticket counter,Reservations,ramp,mechanics,FA,etc and worked their way up would do some well.

Of course that is entirely my opinion.


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