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Jan 15, 2009

Delta expects 2,000 more job cuts

Delta Air Lines Inc. expects roughly 2,000 of its employees to take advantage of an early retirement program as it tries to reduce capacity by 8 percent in 2009, according to Reuters.

The reduction program, announced in early December, includes a domestic capacity cut of 8 percent to 10 percent and an international capacity cut of 3 percent to 5 percent. Delta employs about 75,000 staff worldwide.

The reductions, following Atlanta-based Delta’s merger with Northwest Airlines, are an effort to bolster profits as international travel wanes in the global recession. Both carriers had already cut thousands of jobs in 2008 through early retirements and other buyouts.

Delta offered voluntary severance packages to employees in March, and more than 4,000 applied. Northwest, meanwhile, cut 2,000 positions before the airlines merged.

“We are expecting a number of around 2,000 because the capacity reduction is going to be around 6 to 8 percent,” Delta CEO Richard Anderson told reporters in Tokyo, according to Reuters. ”We will know more toward the end of this month, because we gave employees a wide window so that they can make the right decision.”

Source : BizJournals
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