Bay Area giant could cut payroll by 50 percent
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United Airlines expects to have a much smaller presence at SFO as it warns of impending layoffs.
United Airlines expects to have a much smaller presence at SFO as it warns of impending layoffs.
Photo: Justin Sullivan / Getty Images
United Airlines expects to have a much smaller presence at SFO as it warns of impending layoffs.
United Airlines expects to have a much smaller presence at SFO as it warns of impending layoffs.
Photo: Justin Sullivan / Getty Images
“The COVID-19 pandemic has caused many changes in our personal and professional lives and will result in us being a smaller airline. While I understand that the company needs to align the size of our organization with demand, I also deeply understand and regret the impact This action will have on our employees and their families, “said Kate Gebo, director of human resources and labor relations for United Airlines, at the end of a letter to the California Department of Employment Development.
Large employers should send “WARNING” notices to employees and state authorities when a mass layoff occurs. United’s July 8 letter to California authorities stated that it plans to reduce its workforce at San Francisco International by 6,573 employees, that’s half of its pre-pandemic payroll of 13,000. At Los Angeles International it will cut 1,634 employees, along with fewer at Orange County and San Diego airports.
According to information provided by United, most of the airline’s overall cuts, effective Oct. 1, will be made among flight attendants, followed by airport operations and technical operations personnel. On Tuesday, the airline reported a staggering loss of $ 1.6 billion for the second quarter, with revenue declining 87 percent compared to the same period last year. 65 percent fewer seats are expected to fly in the third quarter compared to the third quarter last year.
This, of course, is devastating news for employees. But what does this mean for travelers? A smaller airline, as United predicts, means significantly fewer options to fly nonstop from OFS, United’s third-largest hub, and its gateway to the Pacific.
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As demand has skyrocketed in recent years, Bay Area travelers have become accustomed to being able to fly nonstop to almost anywhere in the world from SFO at United, which at its most recent peak offered nearly 300 flights per day to 79 national and 29 international destinations. . At its lowest point in April, United offered only 50 flights per day at SFO; It now offers about 115 flights per day, according to a spokesperson.
By flying on a smaller airline, more travelers may have to make a stop or two to reach their final destinations, and it could be years before United’s schedules from the OFS return to pre-pandemic levels.
Business travelers, who have enjoyed the spacious United Club or Polaris VIP lounges, filled with showers, elaborate buffets, and elegant bars, should look forward to a grueling experience in the future. These spaces will be a good place to cool off your heels between flights, but that’s about it. The OFS has already delayed a $ 1 billion renovation of United Terminal 3, which would include a remodel of the outdated United Club there.
Since demand for business travel is expected to drop significantly as companies cut budgets and frequent travelers get used to doing their jobs through online conferences, airlines are likely to reduce the number of comfortable business seats and top-notch on planes, which means fewer upgrade opportunities.
How long will this last? At this point, no one really knows, but it will be a while. As the United States in its WARN letter: “The lack of a medical solution for the virus caused reservations and demand to stop … we hope that travel demand will not be ‘normal’ again until there is a vaccine for COVID – 19. “
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Chris McGinnis is SFGATE’s senior travel correspondent. You can reach him by email or follow him on Twitter or Facebook. Don’t miss a shred of important travel news by subscribing to their FREE weekly email updates!
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