United Airlines plans to cut 3,400 managers

United Airlines served notice Monday that it will cut 3,400 management jobs, about 30% of its white-collar workforce, in a move that will take a bite out of its Chicago headquarters.

Kate Gebo, the carrier’s executive vice president for human resources, announced the cuts in a memo to employees. It arrived four days after United said it lost $1.7 billion in the first quarter.

“Governmental restrictions on travel, stay-at-home orders and the lack of a medical solution for COVID-19 have brought bookings and demand for travel basically to zero,” Gebo wrote. “This is forcing us to come to terms with the fact that our airline – and our entire workforce – will have to be smaller than it is today, and it’s requiring us to continue taking decisive actions.”

She said affected employees will be notified in mid to late July and that the layoffs will take effect Oct. 1. Gebo said employees who leave before Oct. 1 will get benefits such as severance and extended health coverage. After that date, laid-off management workers will not get those benefits, she said.

Read more: https://chicago.suntimes.com/business/2020/5/4/21247540/united-airlines-plans-to-cut-3400-managers