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Speculation-Who do you think will be the 30% leaving AA?

Speculation-Who do you think will be the 30% leaving AA?

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Old Jun 30, 20, 12:04 pm   -   Wikipost
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With the novel Coronavirus crisis, AA is shrinking.

The list of officers leaving American includes

Bridget Blaise-Shamai, President of AAdvantage (link to thread)
Don Casey, Senior Vice President of Revenue Management
Kurt Stache, Senior Vice President of Loyalty, Marketing and Sales,
Alice Curry, Vice President of Customer Care
John Gustafson, Vice President of Digital Experience


other changes include:

David Seymour becomes Chief Operating Officer
Jim Moses adds Premium Services to his Vice President portfolio including PHL,JFK, LGA, BOS
Vasu Raja, Senior Vice President Strategy adds Revenue Management to his Network Operations bailiwick
Rick Elieson takes over AAdvantage, reporting to Vasu Raja / Revenue Management

Separation will include

American Airlines Will Terminate At Least 30% Of Management And Support Staff
  • 6 months at 1/3 pay and 250,000 frequent flyer miles plus 5 years of travel benefits (“pay priority” package) or.
  • 3 months at 1/3 pay, 21 months of health benefits, and 10 years of travel benefits (“Travel/Health priority” package)

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Old May 31, 20, 2:45 pm
  #1  
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Speculation-Who do you think will be the 30% leaving AA?

First of all, kudos to the airline industry and it’s senior management with the upcoming 30% management reductions.

I worked in the financial services industry for over 40 years, before retiring. In those 40 years, I went through at least a dozen “right sizings,” staff reductions, or just plain layoffs. And in those 40 plus years, not ONCE, was a member of senior management part of those dismissed! Another sad indictment of of financial services.

So that’s why I say kudos to senior airline management at Delta, United, and American for making senior management part of the dismissals. It seems only fair.

As to my question, who do we think will be leaving the executive suite, and who do we think will be taking the payouts or be asked to leave from the rank and file?

my .02

I have no knowledge of AA senior management, other than Mr. Parker, so I have no opinion there.

It is my sincere hope and wish that (in a perfect world) only the FA’s, GA’s, and other customer facing employees who hate their job, are burned out, continually provide poor customer service, are a “bad apple, etc. take the the opportunity to take the buy out. I also understand that this is wishful thinking.

I can also speak from personal experiences that it can be devastating to lose your job. My sympathies to the 30% in management and the 30% in the rank-and-file who will be leaving.

YMMV
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Old May 31, 20, 5:55 pm
  #2  
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There's no way for them to choose only the bad apples. I don't know how employment rules work in regard to firing. I imagine they have to be very careful so they don't get sued for some sort of "-ism".
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Old May 31, 20, 6:12 pm
  #3  
 
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I wouldn't feel too sorry for any truly top-level executive leaving any of these companies. They will receive nice payouts.
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Old May 31, 20, 9:05 pm
  #4  
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They aren't necessarily cutting senior management, they specified "management and support staff," which includes some of the folks that work at hubs and at headquarters that are not necessarily "senior management" -- think route planning analysts, because if you expect to be a smaller airline, you don't need as many people to plan routes.

The issue with laying off senior management is that if, for example, your head of HR leaves, then you still need someone to run HR. Maybe if they promote someone into the position it will be cheaper, but not necessarily by a huge amount.
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Old May 31, 20, 9:12 pm
  #5  
 
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Originally Posted by Dallas49er View Post
First of all, kudos to the airline industry and it’s senior management with the upcoming 30% management reductions.

I worked in the financial services industry for over 40 years, before retiring. In those 40 years, I went through at least a dozen “right sizings,” staff reductions, or just plain layoffs. And in those 40 plus years, not ONCE, was a member of senior management part of those dismissed! Another sad indictment of of financial services.

So that’s why I say kudos to senior airline management at Delta, United, and American for making senior management part of the dismissals. It seems only fair.

As to my question, who do we think will be leaving the executive suite, and who do we think will be taking the payouts or be asked to leave from the rank and file?

my .02

I have no knowledge of AA senior management, other than Mr. Parker, so I have no opinion there.

It is my sincere hope and wish that (in a perfect world) only the FA’s, GA’s, and other customer facing employees who hate their job, are burned out, continually provide poor customer service, are a “bad apple, etc. take the the opportunity to take the buy out. I also understand that this is wishful thinking.

I can also speak from personal experiences that it can be devastating to lose your job. My sympathies to the 30% in management and the 30% in the rank-and-file who will be leaving.

YMMV
Either I’m clueless or I’m chill like Ghandi. I have never had a run in with any staff member, ground or inflight. In fact, and I know everyone is a YMMV, but I enjoy flying AA. I still find a large amount of value being an EP. From the dedicated RES line to MCE seating and free snack and drink to Intl. Lounge access. Over the last 7 years I’ve gotten to know a hand full of ground staff and have always been taken care of by those I don’t know. I’m a low spend, EP, so maybe my expectations aren’t so high? Hell this year, thanks to COVID, I’m in the 90% range in upgrades. (I didn’t stop flying). I switched from DL years ago because their I found their staff surely. Lol, can’t explain it. Cheers!
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Old May 31, 20, 9:31 pm
  #6  
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Originally Posted by Dallas49er View Post
I worked in the financial services industry for over 40 years, before retiring. In those 40 years, I went through at least a dozen “right sizings,” staff reductions, or just plain layoffs. And in those 40 plus years, not ONCE, was a member of senior management part of those dismissed!
Honestly, that's absurd. Senior management gets pushed out all the time. I mean what do you think happened to most of the leadership of Bear Stearns and Lehman? I mean it's not like they can just eliminate the CFO role, so it often takes a different form.
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Old May 31, 20, 9:38 pm
  #7  
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Originally Posted by VFR View Post

The issue with laying off senior management is that if, for example, your head of HR leaves, then you still need someone to run HR. Maybe if they promote someone into the position it will be cheaper, but not necessarily by a huge amount.
I know countries where that would be illegal. It is the role that is redundant , is no longer required and cannot be refilled within a certain timeframe. You cannot make a position redundant and then promote someone to that position. If needing it refilled, then it wasnt redundant
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Old May 31, 20, 9:39 pm
  #8  
 
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Here's my picks
Elise Eberwein (Executive Vice President, People and Communications)
Stephen Johnson (Executive Vice President, Corporate Affairs)
Derek Kerr (Executive Vice President and CFO)
Maya Leibman (Executive Vice President and Chief Information Officer)
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Old May 31, 20, 9:42 pm
  #9  
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Originally Posted by Dave Noble View Post
I know countries where that would be illegal. It is the role that is redundant , is no longer required and cannot be refilled within a certain timeframe. You cannot make a position redundant and then promote someone to that position. If needing it refilled, then it wasnt redundant
For the most part, the US is "at-will" employment, so it would be legal as long as the person was not fired for a protected reason, it's legal. You're going to run into morale issues in leadership pretty fast if you do this though.

I would expect the C-suite may have a contract stipulating severance of some kind. When AA fired Scott Kirby, he got $13M and retained staff travel as severance.
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Old May 31, 20, 10:35 pm
  #10  
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Originally Posted by ijgordon View Post
Honestly, that's absurd. Senior management gets pushed out all the time. I mean what do you think happened to most of the leadership of Bear Stearns and Lehman? I mean it's not like they can just eliminate the CFO role, so it often takes a different form.
Respectfully disagree. Bear Stearns and Lehman are poor examples, as those companies just collapsed and EVERYONE was out of a job.

To be clear, my point was, based on personal experience. One example: I survived a 15% across the board staff reduction, including Sales, Secretaries, tech support, sales support, etc. The 15% reductions did not extend to senior management and the C-suite.

Once again, kudos to AA management. Tough decisions ahead.
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Old May 31, 20, 10:36 pm
  #11  
 
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Originally Posted by ATLflyer2017 View Post
There's no way for them to choose only the bad apples.
In the management ranks, sure they can.

Is OP asking for a list of who I/we would fire if I/we were AA's CEO? You want me/us to name names? Not going to go there...

Originally Posted by Dallas49er View Post
I worked in the financial services industry for over 40 years, before retiring. In those 40 years, I went through at least a dozen “right sizings,” staff reductions, or just plain layoffs. And in those 40 plus years, not ONCE, was a member of senior management part of those dismissed! Another sad indictment of of financial services.

So that’s why I say kudos to senior airline management at Delta, United, and American for making senior management part of the dismissals. It seems only fair.
Plenty of senior management has been RIF'd from AA. Both in the 2002 timeframe and in the LUS purges following the merger.
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Last edited by Herb687; May 31, 20 at 10:40 pm Reason: multi-quote
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Old Jun 1, 20, 3:21 am
  #12  
 
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I don't understand the OP's question.

From this article (https://www.usatoday.com/story/trave...30/5272919002/
American Airlines will cut its management and support staff by about 30%, according to an internal letter from Elise Eberwein, executive vice president of people and communication, obtained by USA TODAY.
and
The airline's management and support staff include about 17,000 people, American Airlines spokesperson Ross Feinstein told USA TODAY.
I am sure the OP does not want FTers to name the roughly 17,000 people?

I don't think this is about firing senior officers of AA either (like the ones a poster mentioned above).
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Old Jun 1, 20, 3:29 am
  #13  
 
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AA needs Maya Leibman to stay....she’s incredibly smart and talented (and also LAA FWIW).
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Old Jun 1, 20, 9:54 am
  #14  
 
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Some of the 30% are likely to be middle managers at the hubs and field stations. There are customer service managers (CSMs) on both the ramp and ticket/gate sides of the operation, who are non-union and considered “management and support staff.” I’ve heard from friends at AA that the legacy US Airways hubs, especially PHL, are especially overstaffed with CSMs considering the current flight schedule.
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Old Jun 1, 20, 10:01 am
  #15  
 
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Does it really matter who AA may plan to let go? its not has if we will ever get back the AA that most of us have known prior to the takeover?
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