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Problems at Delt Airlines

This article, "Delta Air Lines to Cut Up to 8000 More Jobs," reports that Delta Air Lines will cut 8000 more jobs this year than previously assumed due to a decline in profits reported last quarter. According to the article, this means there have been a total of 21,000 jobs cut, or approximately 25 percent of the company's workforce since the terrorist attacks on September 11, 2001. This is after posting a third-quarter loss of $326 million and announcing that it did not see any improvement in the foreseeable future ("Delta Air Lines. . .," 2002). Continental, Northwest, Southwest, and America West airlines also reported losses in their third-quarter statement. These airlines lost a combined total of $39 million, however, much lower than that posted by Delta. The article then lists the profit/loss statement of each of the above companies, along with the projected loss by Thomson First Call.

Although Delta Air Lines has posted a loss of $326 million and announced that it will cut more jobs, as Leo F. Mullin, chief executive, told employees, they hoped to achieve this through voluntary leave, early retirement, and severance programs ("Delta Air Lines. . .," 2002). This announcement will probably also encourage any employees who were thinking of moving to new position in a different company to do so in the near future. While many companies have over-hired to a certain extant and need to "trim the fat," when lay-offs of this magnitude occur in any business, managers and employees alike may need to take some time to adjust to the shifting of duties or merging of departments. Managers may need to shoulder responsibilities that they formerly passed on to others in their department, while some employees may suddenly have new routines foisted upon them, leading to possible inaccurate reports and delays. In addition, there is the probable decrease in morale, which may lead to an added decrease in prod

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Problems at Delt Airlines. (1969, December 31). In LotsofEssays.com. Retrieved 07:08, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1689014.html