United Airlines is set to cut 16,370 jobs next month or about 20% of its frontline employees as the steep decline in travel demand amid the Covid-19 pandemic, the airline announced on Wednesday.
According to the Los Angeles Times report, the furloughs announced of United Airlines will take effect as soon as Oct. 1, the expiration of a six-month restriction on job cuts imposed in exchange for payroll aid under the U.S. CARES Act. To date, about 7,400 United employees have chosen to exit the company voluntarily, while 20,000 are on temporary leave.
The carrier said that furloughs could be avoided if the U.S. government extends aid to the industry. However, the United executives also stated that the number of the coming furlough is less than half of the airline’s July furlough forecast, thanks in part to 7,400 employees accepting early retirements or voluntary departures, and an unspecified number taking unpaid leave.