Delta to initiate voluntary severance scheme

Posted on: December 15th, 2008 by Katy Davies

Delta Air Lines, the largest of the world’s carriers, is about to offer voluntary severance payouts to a large percentage of the 75,000 mainline operations staff employed by Delta and Northwest in a bid to reduce its workforce, executives of the airline reported on Friday.

The airline’s chief executive, Richard Anderson, and its president, Ed Bastian, sent a memo to all employees outlining the program, indicating that it is similar to the initiative instituted by Delta early in the year when it reduced its workforce by 4,000 jobs. Northwest also cut its workforce before it was acquired on October 29, by Delta.

According to the carrier’s officials, the cuts are needed as Delta will be reducing its capacity around the world next year by six to eight percent, as the recession is seeing a continuing decline in passenger demand.

“These capacity reductions will reduce the number of people needed to operate the airline,” they added in the statement. “Consistent with how we have managed headcount reductions in the past, we again will offer voluntary programs to Delta employees including those who have joined from Northwest.”

Although the company has not specified the number of jobs it is seeking to cut, it did say that the goal is to accomplish the workforce reduction by attrition, limitations on new hiring and the voluntary severance program. Airline spokeswoman Betsy Talton added that most mainline employees are eligible to apply for the severance payouts, although she also did not provide details on the numbers involved.

Thanks to news.yahoo.com for the above quotes, for more information on this article please visit their website.

www.delta.com

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