Jun 6, 2020, 9:17 am
Last edit by: JDiver
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
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)
Speculation-Who do you think will be the 30% leaving AA?
May 31, 2020, 1:45 pm
#1
Original Poster
Join Date: May 2004
Location: DFW-In Plano & CDG-In the 11th
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Posts: 3,209
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
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
May 31, 2020, 4:55 pm
#2
formerly jackvogt
Join Date: Dec 2015
Location: Atlanta, GA
Programs: Delta SkyMiles,
Posts: 822
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".
May 31, 2020, 8:05 pm
#4
Join Date: Aug 2016
Location: BOS
Programs: AA PP, DL PM
Posts: 2,086
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.
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.
May 31, 2020, 8:12 pm
#5
Join Date: Nov 2014
Location: SoCal,
Programs: BAEC Gold, AA PPro
Posts: 771
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
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
May 31, 2020, 8:31 pm
#6
FlyerTalk Evangelist
Join Date: Apr 2001
Location: NYC
Posts: 27,222
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!
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.
May 31, 2020, 8:38 pm
#7
A FlyerTalk Posting Legend
Join Date: Jan 2002
Posts: 44,550
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
May 31, 2020, 8:39 pm
#8
Join Date: Aug 2010
Programs: AA EXP
Posts: 1,657
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)
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)
May 31, 2020, 8:42 pm
#9
Join Date: Aug 2016
Location: BOS
Programs: AA PP, DL PM
Posts: 2,086
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
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.
May 31, 2020, 9:35 pm
#10
Original Poster
Join Date: May 2004
Location: DFW-In Plano & CDG-In the 11th
Programs: DL Diamond, AA revenue negative, Bonvoy Titanium +, Avis likes me
Posts: 3,209
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.
May 31, 2020, 9:36 pm
#11
FlyerTalk Evangelist
Join Date: Nov 2001
Location: Wanting First. Buying First.
Programs: Lifetime Executive Diamond Platinum VIP with Braniff, Eastern, Midway, National & Pan Am
Posts: 17,481
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...
Plenty of senior management has been RIF'd from AA. Both in the 2002 timeframe and in the LUS purges following the merger.
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...
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.
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.
Last edited by Herb687; May 31, 2020 at 9:40 pm Reason: multi-quote
Jun 1, 2020, 2:21 am
#12
Join Date: Nov 2007
Location: Los Angeles
Programs: AA LT Gold
Posts: 3,644
I don't understand the OP's question.
From this article (https://www.usatoday.com/story/trave...30/5272919002/
and
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).
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.
The airline's management and support staff include about 17,000 people, American Airlines spokesperson Ross Feinstein told USA TODAY.
I don't think this is about firing senior officers of AA either (like the ones a poster mentioned above).
Jun 1, 2020, 8:54 am
#14
Join Date: Apr 2004
Location: DCA/IAD
Programs: AA Gold, Amex Plat
Posts: 4,007
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.