American Airlines Cuts to Hit Miami

American Airlines is the country's third largest airline. It is currently in Chapter 11 bankruptcy because of losing profitability over the last few years. The company announced that it would like to cut as many as 1000 jobs in the Miami area in order to pull itself out of bankruptcy. In a city where the unemployment rate remains high, this job cut could be problematic for many people, including those working in supporting industries.

The company announced it would be slashing as many as 13,000 employees throughout the world. It is estimated that about 1000 of those positions will come from the Miami area. The company noted that in order to pull itself out of bankruptcy it needed to shed as many as 13,000 jobs throughout the world in positions ranging from baggage handlers, pilots, flight attendants and maintenance crews. Management positions would also be affected in most areas.

The 1000 job losses, according to a representative for Transport Workers Union who represents workers in the area, these jobs only represent employees that are a part of that union. Additional cuts may also be affected. The hardest hit in the Miami area is likely to be fleet service workers.

The bankruptcy filing in November of 2011 was a move to help the company to pull out of massive debt. However, in order to remove itself, it must make as much as a $2 billion a year spending cut while also aiming to increase revenue throughout the world by $1 billion. This will take drastic action.