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LAXintl
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Management layoffs coming to AA

Tue Jun 19, 2018 7:09 pm

Per email sent out by Paker and Isom;


Dear Management and Support Staff Team Members,

Earlier today, we held our quarterly director and above meeting where we discussed our need to operate more efficiently and build the next generation of leaders.

We’ve been talking about playing the long game for some time and an important piece of this is creating the right organizational structure for the future. 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. This work starts at the top.

As a result of the integration work required, American has more director and above leaders than we require for the long term. It is a worthy exercise to consider each leader’s span of care (how many direct reports one has), individual performance, and growth opportunities within each area. Over the next several weeks, our top leaders will engage in career conversations with their director and above team members that will include both some involuntary exits as well as an option for those who have been with the company for at least two years to leave American voluntarily with severance benefits. Similar to early outs that have been offered to several of our frontline groups, this is an opportunity for team members at those levels to reflect on their current roles and their futures. It will also give department leaders the opportunity to potentially combine positions at those levels. The outcome will provide future growth opportunities for team members who have not yet reached the level of director, and reduce overall positions of higher management.

Reviewing our current structure and having this dialogue with top leaders is a productive way to appreciate what has been created thus far, build on that momentum for the future, and open new paths of career progression for the next generation of leaders. While much of this restructuring will happen at the director and above level, we will also take the opportunity to look at our non-frontline facing management structure. The majority of improving efficiency at those levels will happen through the elimination of open positions and attrition. However, as leaders take the time to look at their organization, there is the potential for some involuntary departures as well. In those cases, impacted team members would also receive severance benefits and outplacement assistance.

We are nearly five years into integration. While not all integration work is complete, much of it is and as a result, now is the right time to look at the organizational structure we need for the future. This will require all of us to challenge the way we have always done things and think creatively and broadly about American’s very bright future. Thank you for being part of this journey and for all you do for American.



=

https://theforwardcabin.com/2018/06/19/ ... positions/


Its good parts of the post-merger overlap and bloated reporting structure gets an additional trim.
From the desert to the sea, to all of Southern California
 
AA737-823
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 7:24 pm

Well they've got to pay Wells Fargo for the planes they're stealing, somehow!!

But do keep in mind, they will never, ever again lose money. Doug Parker himself told us!
:roll:
 
nmdrdh787
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 7:28 pm

I wonder where they are cutting. Lets take some bets about where I can send my resume!

I kid, I kid.
 
DarthLobster
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 7:36 pm

Wonder how much they’d save if they just kicked Parker to the curb like he deserves. Icahn and Lorenzo are saving a seat for him in CEO hell...
 
planecane
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 7:37 pm

I guess it's good timing. They can get their resume ready for David Neeleman!
 
MKIAZ
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 7:42 pm

I'm guessing some management at PSA may well be on the chopping block after the last few days...
 
cledaybuck
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 7:46 pm

DarthLobster wrote:
Wonder how much they’d save if they just kicked Parker to the curb like he deserves. Icahn and Lorenzo are saving a seat for him in CEO hell...
They are still alive.
As we celebrate mediocrity, all the boys upstairs want to see, how much you'll pay for what you used to get for free.
 
HPAEAA
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 7:47 pm

Wow, very inspirational for those who make it through this review process... what's really surprising is the missed opportunity here to tie the changes back into the future of the company, I've worked with several companies that do this on a regular basis and actually appreciate it when they do it for purpose (not just our number say we have too many of you)....
1.4mm and counting...
 
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Super80Fan
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 7:51 pm

I know it won't be but it would really make my day if one of them is Parker.
RIP McDonnell Douglas
RIP US Airways
 
DarthLobster
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 7:58 pm

cledaybuck wrote:
DarthLobster wrote:
Wonder how much they’d save if they just kicked Parker to the curb like he deserves. Icahn and Lorenzo are saving a seat for him in CEO hell...
They are still alive.


An astute and ultimately pointless observation. Alive or not, they’re also both effectively blacklisted from the industry.
 
Flighty
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 8:02 pm

AA737-823 wrote:
Well they've got to pay Wells Fargo for the planes they're stealing, somehow!!

But do keep in mind, they will never, ever again lose money. Doug Parker himself told us!
:roll:


I think Doug was the right man for a particular time period. But he has had missteps.
 
Boof02671
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 8:31 pm

AA737-823 wrote:
Well they've got to pay Wells Fargo for the planes they're stealing, somehow!!

But do keep in mind, they will never, ever again lose money. Doug Parker himself told us!
:roll:

Hi Josh.
 
dlphoenix
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 8:40 pm

My heart goes for AA middle managers, someone just ruined their summer.
And Doug Parker deserves a lot more respect. AA needs to transform itself - Integration focused AA needs to become Post integration AA. Management needs to adjust, and Doug Parker is taking this challenge with stride, exhibiting real leadership.

Good luck to everybody
And best of luck to the ones who will be affected.
 
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SumChristianus
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 8:40 pm

How about they hire Smisek to take over and "streamline" management? :smile:
LAXintl wrote:
Dear Management and Support Staff Team Members,


That letter was confusing, so Isom/Parker are staying but middle management is threatened?

Any relation to the PSA problems occurring right now? They could merge PSA/Piedmont/Envoy for one to streamline something.

Whoever they drop could apply at Mozzy Air.....I hope
Last edited by SumChristianus on Tue Jun 19, 2018 8:46 pm, edited 1 time in total.
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dlphoenix
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 8:46 pm

SumChristianus wrote:
How about they hire Smisek to take over and "streamline" management? :smile:


Smisek would have gone on vacation and outsourced the layoffs while he is away (a-la "up in the air...")
Parker has the balls to say things as they are.

Nobody is perfect, but he is trying hard to do it right.

DLP
 
qcpilotxf
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 8:49 pm

SumChristianus wrote:
How about they hire Smisek to take over and "streamline" management? :smile:
LAXintl wrote:
Dear Management and Support Staff Team Members,


That letter was confusing, so Isom/Parker are staying but middle management is threatened?


I read that as they are too large at the upper middle management level (so below VP) due to the integration responsibilities. Now that integration is "done" a lot of those teams can likely be downsized or consolidated.

I'm curious if they will continue the trimming below the director level into regular middle management and support staff positions.
 
UpNAWAy
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 8:50 pm

The letter states this is about Directors, and Sr Directors. There is still a lot of duplication and overlaps from the merger. This is much a needed thinning.
 
winginit
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 10:40 pm

This is long overdue. The AA org chart is riddled with Directors and Managing Directors with less than 10 total reports, which is absurd compared to companies of comparable size to include DL.
 
airzona11
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 10:55 pm

Post-merger cleanup
 
Prost
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 11:03 pm

Are the middle managers being addressed here proportionally distributed between PMAA and PMUS? Or were some managers hired specifically post merger to address integration issues?
 
WkndWanderer
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Re: Management layoffs coming to AA

Tue Jun 19, 2018 11:23 pm

DarthLobster wrote:
cledaybuck wrote:
DarthLobster wrote:
Wonder how much they’d save if they just kicked Parker to the curb like he deserves. Icahn and Lorenzo are saving a seat for him in CEO hell...
They are still alive.


An astute and ultimately pointless observation. Alive or not, they’re also both effectively blacklisted from the industry.


Tossing Parker in with Icahn doesn't really fit, like him or not he's been an airline guy for three decades, he wasn't just a notorious corporate asset pillager who swept in for a few years for a midnight raid of the village.
 
Ionosphere
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Re: Management layoffs coming to AA

Wed Jun 20, 2018 2:26 am

Parker turn little America West into the largest airline in the world in less than 10 years.
 
usflyer msp
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Re: Management layoffs coming to AA

Wed Jun 20, 2018 2:53 am

Ionosphere wrote:
Parker turn little America West into the largest airline in the world in less than 10 years.


DP has been an excellent leader and has done a great job with HP/US/AA. Haters are gonna hate no matter whom the CEO of AA is.
 
usairways787
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Re: Management layoffs coming to AA

Wed Jun 20, 2018 7:05 am

Flighty wrote:
AA737-823 wrote:
Well they've got to pay Wells Fargo for the planes they're stealing, somehow!!

But do keep in mind, they will never, ever again lose money. Doug Parker himself told us!
:roll:


I think Doug was the right man for a particular time period. But he has had missteps.


You mean like lying and undermining his labor, racking up $25 billion in debt, increasing share buybacks at an astronomical level, while being the he and Isom are the two biggest shareholders in the company missteps? I guess it really depends on which end you're looking at in regards to missteps.
 
usairways787
Posts: 238
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Re: Management layoffs coming to AA

Wed Jun 20, 2018 7:08 am

usflyer msp wrote:
Ionosphere wrote:
Parker turn little America West into the largest airline in the world in less than 10 years.


DP has been an excellent leader and has done a great job with HP/US/AA. Haters are gonna hate no matter whom the CEO of AA is.


You can put that koolaid cup down now.
 
Lootess
Posts: 547
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Re: Management layoffs coming to AA

Fri Jun 22, 2018 8:27 pm

usairways787 wrote:
Flighty wrote:
AA737-823 wrote:
Well they've got to pay Wells Fargo for the planes they're stealing, somehow!!

But do keep in mind, they will never, ever again lose money. Doug Parker himself told us!
:roll:


I think Doug was the right man for a particular time period. But he has had missteps.


You mean like lying and undermining his labor, racking up $25 billion in debt, increasing share buybacks at an astronomical level, while being the he and Isom are the two biggest shareholders in the company missteps? I guess it really depends on which end you're looking at in regards to missteps.


Overdue step to clean-up.

AA's debt relative to competitors like DL is astronomical. Granted AA was on a plane buying spree that started well pre-BK, they couldn't hold their containment and have probably too many plane leases.
 
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Super80Fan
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Re: Management layoffs coming to AA

Fri Jun 22, 2018 8:37 pm

usflyer msp wrote:
Ionosphere wrote:
Parker turn little America West into the largest airline in the world in less than 10 years.


DP has been an excellent leader and has done a great job with HP/US/AA. Haters are gonna hate no matter whom the CEO of AA is.


So I take it you're being held hostage right now at AA HQ? It's OK, I'll alert the authorities.
RIP McDonnell Douglas
RIP US Airways
 
HPRamper
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Re: Management layoffs coming to AA

Sat Jun 23, 2018 11:44 am

usairways787 wrote:
Flighty wrote:
AA737-823 wrote:
Well they've got to pay Wells Fargo for the planes they're stealing, somehow!!

But do keep in mind, they will never, ever again lose money. Doug Parker himself told us!
:roll:


I think Doug was the right man for a particular time period. But he has had missteps.


You mean like lying and undermining his labor, racking up $25 billion in debt, increasing share buybacks at an astronomical level, while being the he and Isom are the two biggest shareholders in the company missteps? I guess it really depends on which end you're looking at in regards to missteps.

Tell me about the amazing atmosphere at AA pre-merger. Oh, wait.
 
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Revelation
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Re: Management layoffs coming to AA

Sat Jun 23, 2018 12:00 pm

So, is anyone willing to put any numbers to this?

How many "director and above leaders" does AA have?

How many "future growth opportunities" is AA seeking to create?

How much "efficiency" are they looking to create in the "non-frontline facing management structure"?
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Rdh3e
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Re: Management layoffs coming to AA

Sat Jun 23, 2018 2:08 pm

usairways787 wrote:
, while being the he and Isom are the two biggest shareholders in the company missteps?

They are not the largest shareholders. They are no where near it.

https://m.nasdaq.com/symbol/aal/ownership-summary
 
9w748capt
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Re: Management layoffs coming to AA

Sat Jun 23, 2018 2:48 pm

HPRamper wrote:
usairways787 wrote:
Flighty wrote:

I think Doug was the right man for a particular time period. But he has had missteps.


You mean like lying and undermining his labor, racking up $25 billion in debt, increasing share buybacks at an astronomical level, while being the he and Isom are the two biggest shareholders in the company missteps? I guess it really depends on which end you're looking at in regards to missteps.

Tell me about the amazing atmosphere at AA pre-merger. Oh, wait.


Back when AA actually served edible food? Yup I remember!
 
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DUDEofJETS
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Re: Management layoffs coming to AA

Sat Jun 23, 2018 7:22 pm

DarthLobster wrote:
Wonder how much they’d save if they just kicked Parker to the curb like he deserves. Icahn and Lorenzo are saving a seat for him in CEO hell...


I've worked under Parker and Ichan and to compare the two makes me wonder if you have. Parker may not be making AA the luxury airline you want it to be, but he isn't stealing the airline blind through ticketing schemes and Parker is running a far better operation than Ichan ever dreamed of being able to do, or cared to do.
 
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DUDEofJETS
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Re: Management layoffs coming to AA

Sat Jun 23, 2018 7:35 pm

usairways787 wrote:
Flighty wrote:
AA737-823 wrote:
Well they've got to pay Wells Fargo for the planes they're stealing, somehow!!

But do keep in mind, they will never, ever again lose money. Doug Parker himself told us!
:roll:


I think Doug was the right man for a particular time period. But he has had missteps.


You mean like lying and undermining his labor, racking up $25 billion in debt, increasing share buybacks at an astronomical level, while being the he and Isom are the two biggest shareholders in the company missteps? I guess it really depends on which end you're looking at in regards to missteps.


During the HP US Merger it became so clear at how the US employees were angry, bitter, rude and hateful. Nothings changed for you it seems. I hope for you that you've sought out employment elsewhere.
 
Austin787
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Re: Management layoffs coming to AA

Sat Jun 23, 2018 9:33 pm

SumChristianus wrote:
How about they hire Smisek to take over and "streamline" management? :smile:
LAXintl wrote:
Dear Management and Support Staff Team Members,


That letter was confusing, so Isom/Parker are staying but middle management is threatened?

Any relation to the PSA problems occurring right now? They could merge PSA/Piedmont/Envoy for one to streamline something.

Whoever they drop could apply at Mozzy Air.....I hope

I doubt many PSA employees would be affected by the upcoming layoffs. PSA used to be part of US Airways group before the merger. Instead, I think LAA management, especially those based in NYC, will be impacted the most.
 
FlyingElvii
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Re: Management layoffs coming to AA

Sun Jun 24, 2018 4:44 am

Austin787 wrote:
SumChristianus wrote:
How about they hire Smisek to take over and "streamline" management? :smile:
LAXintl wrote:
Dear Management and Support Staff Team Members,


That letter was confusing, so Isom/Parker are staying but middle management is threatened?

Any relation to the PSA problems occurring right now? They could merge PSA/Piedmont/Envoy for one to streamline something.

Whoever they drop could apply at Mozzy Air.....I hope

I doubt many PSA employees would be affected by the upcoming layoffs. PSA used to be part of US Airways group before the merger. Instead, I think LAA management, especially those based in NYC, will be impacted the most.

They won’t be affected at all by this. These cuts are coming at God-level, and above, mostly at HQ.
 
grbauc
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Re: Management layoffs coming to AA

Sun Jun 24, 2018 7:57 am

Flighty wrote:
AA737-823 wrote:
Well they've got to pay Wells Fargo for the planes they're stealing, somehow!!

But do keep in mind, they will never, ever again lose money. Doug Parker himself told us!
:roll:


I think Doug was the right man for a particular time period. But he has had missteps.



Yes I agree. Its time for the next vision. DP did what no other has done and its for the history books. ID like to see some one with a vision towards the future with a understanding of Branding forward looking view.
 
aviationaware
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Re: Management layoffs coming to AA

Sun Jun 24, 2018 8:45 am

usairways787 wrote:
racking up $25 billion in debt


Not sure what you have to complain about, the balance sheet is completely in order. The debt is more than fully covered by PPE assets and judging from the interest expense, it's also not expensive debt.
 
usairways787
Posts: 238
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Re: Management layoffs coming to AA

Wed Jun 27, 2018 7:39 am

DUDEofJETS wrote:
usairways787 wrote:
Flighty wrote:

I think Doug was the right man for a particular time period. But he has had missteps.


You mean like lying and undermining his labor, racking up $25 billion in debt, increasing share buybacks at an astronomical level, while being the he and Isom are the two biggest shareholders in the company missteps? I guess it really depends on which end you're looking at in regards to missteps.


During the HP US Merger it became so clear at how the US employees were angry, bitter, rude and hateful. Nothings changed for you it seems. I hope for you that you've sought out employment elsewhere.


I don't plan on going anywhere, instead I plan to stand firm in my stance in regards to Doug Parker being a fraud, and a liar. He and his team have caused the distrust and dismay amongst the work groups. What was promised to the two work groups over 3 years ago is indeed just the opposite. While other work groups have gotten what was promised Mechanics and Fleet are left behind. The proposal brought to us is loaded with outsourcing, and cuts, which puts me, and others at risk while the top reap the rewards of us busting our asses. So please, excuse me for calling it how I see it. What was promised, but continues to be undelivered but oh hey look, we got shiny new panes, a new logo, and a nice new headquarters.

You are correct, the atmosphere sucks, and while I, and others would very much like to change it for the better, it's becoming nearly impossible with this leadership team, as they just don't care. It's that simple.
 
micstatic
Posts: 777
Joined: Fri Jul 20, 2001 10:07 pm

Re: Management layoffs coming to AA

Wed Jun 27, 2018 8:07 pm

winginit wrote:
This is long overdue. The AA org chart is riddled with Directors and Managing Directors with less than 10 total reports, which is absurd compared to companies of comparable size to include DL.


Three is a ton more to some managers job than being a supervisor. Yes, it's not insignificant how many reports you have. But way more important, is the value somebody brings to the company.
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