Bankrupt Delta to cut 9,000 jobs, executives’ pay

09/23/2005

Harry R. Weber,
Associated Press
September 23, 2005

ATLANTA—Delta Air Lines Inc. said Thursday that it will eliminate up to 9,000 more jobs, slash pay for executives and other employees and cut domestic capacity while adding more international flying.

The job cuts announced Thursday, which will be phased in over more than a year, represent 17 percent of the airline’s workforce. Earlier rounds of cuts have shed 24,000 jobs since 2001.

The Atlanta-based airline’s CEO, Gerald Grinstein, said in a memo to employees that the changes could prompt some of them to leave the company.

“Delta people understandably must make career decisions based on their own best interests and personal circumstances,” Grinstein wrote. “For those who leave the company either through choice or by the plan’s requirements, I hope you know how much your service has been appreciated.”

To those who stay, Grinstein said Delta “needs every ounce of your proven professionalism.”

Delta is trying to save an additional $3 billion annually by the end of 2007. That’s on top of $5 billion Delta had previously said it wanted to save by the end of 2006.

Grinstein’s $450,000 annual salary will be cut by 25 percent, while all other executives will take a 15 percent pay cut. The 7,000 to 9,000 job cuts will come from the 52,000 people employed at Delta’s flagship airline and not at any of its affiliated airlines, spokeswoman Chris Kelly said.

Grinstein said his company’s effort will protect Delta from the threats posed by its competitors and make the company profitable in slightly more than two years.