A $5 billion federal bailout prevents United Airlines from laying off any staff until October, so the CEO says the company will wait until October 1 to make its “overall workforce smaller.”
“The challenging economic outlook means we have some tough decisions ahead as we plan for our airline, and our overall workforce, to be smaller than it is today, starting as early as October 1,” read a letter sent to staff by CEO Oscar Munoz and President Scott Kirby posted online Wednesday.
That way, United will get to keep its $5 billion. Well, $3.5 billion of it anyway. That’s a grant. The other $1.5 billion is a low-interest rate loan.
Yesterday, the company said the $5 billion would be used “to pay for the salaries and benefits of tens of thousands of United Airlines employees.”