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The New York Times reported in a February 1st, 2012 news article that after filing for bankruptcy American Airlines will be looking to cut employment by roughly 16 percent.
The company filed for bankruptcy back in November and has been working with the bankruptcy courts to find a solution to their debt problems. As of now, the company has reported that they will be looking to lay off 13,000 workers, cut pension plans and make major cuts to current employees and retirees’ health benefits.
The company predicts that these cuts will reduce their total liabilities by $2 billion a year. Some critics, specifically union workers, have chastised the company’s proposal, saying that it was going too far by letting go so many workers.
American Airlines was the last of the major airlines to file for a bankruptcy protection. The majority of the major domestic airlines have sought bankruptcy assistances in the last decade. Many have used the court’s help to renegotiate labor contracts and pension plans to help lower their debt owed.
We at the Law Offices of Jayson Lutzky, PC are interested in informing our clients about current economic conditions to help them better handle personal debt. If you are struggling with debt, and you are in need of legal advice, please feel free to call us at 1-800-660-5299 or visit us at www.bankruptcynyc.com for a free initial consultation.