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.
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.