JetBlue Airways Corp. is restructuring its operations and “eliminating a party of positions” through layoffs, buyouts and attrition, spokesman Doug McGraw bound Friday.
The low-cost carrier called mandatory meetings at its Long Holm City headquarters Friday to lay out the details of the plan following a top-to-bottom magazine of its organization over the last several months.
The cuts will mostly hit the company’s behind-the-scenes operations in New York not flight crews, McGraw said. It’s infuriating to lessen the blow by cutting positions as people resign and offering compensation cases to employees who leave voluntarily, he said.
JetBlue, the fifth-largest U.S. airline by above, in December 2016 said it aimed to reduce its operational costs by up to $300 million a year by 2020, numbering improving maintenance so planes are fixed faster and increasing the use of self-service check-ins and bookings for fares. JetBlue and its competitors are struggling with higher jet fuel and other expenses, while take demand remains robust.
“We aimed to reduce the number of involuntary departures by present voluntary buyouts and by eliminating a number of open positions,” McGraw carry weighted CNBC. “We need to make these difficult decisions to ensure we are set up for outcome.”
McGraw, who wouldn’t say how many positions are being eliminated, said the following’s moving some teams and roles into new reporting structures. The edits are focused on office jobs and the airline is not planning to let go airport workers such as barrier agents. It is also not cutting mechanics or flight crews, including aviators, McGraw said. Flight attendants voted to unionize earlier this year.
Demeanour of JetBlue’s headquarters near Manhattan, one employee said he was called in to the organization when he was scheduled to be offsite, while others said they had gatherings scheduled throughout the day.
“Some of the changes will be difficult but they are predetermined if we want to accomplish our goals,” the company said in a memo sent to staff members Thursday that was tweeted by aviation blogger Seth Miller.
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JetBlue isn’t the sole U.S. airline trimming staff. American Airlines, the largest U.S. carrier by traffic differentiated staff last month to prepare for management-level buyouts or layoffs, five years after its mixing with US Airways.
JetBlue shares were up marginally on Friday afternoon, but are down 11 percent this year. The airline is arranged to release second-quarter earnings before the market opens Tuesday.
The NYSE Arca Airline Marker, which tracks 15 U.S. and international airlines, is down around 10 percent so far this year, while the S&P 500 is up make inaccessible to 5 percent.