Delta Air Lines has revealed it is laying off a number of corporate jobs, but not revealed how many: answering that key question seems necessary to me to extrapolate any true meaning from these layoffs.
Delta Lays Off Unspecified Number Of Employees In Corporate Roles
As reported by CNBC, Delta will lay off an unspecified number of corporate jobs:
“While we’re not yet back to full capacity, now is the time to make adjustments to programs, budgets and organizational structures across Delta to meet our stated goals — one part of this effort includes adjustments to corporate staffing in support of these changes. These decisions are never made lightly but always with care and respect for our impacted team members and the Delta family.”
I grant there is some symbolic significance to an airline laying off workers for the first time since the start of the pandemic.
But I don’t think we can make any conclusions at this point without knowing how many workers are impacted.
I do agree with One Mile At A Time that the higher labor costs airlines are taking on, particularly with new pilot contracts, may be unsustainable. At the same time, I do not think this news from Delta validates that point or suggests that higher labor and fuel costs are truly hurting the bottom line (after all, Delta just reported record profit).
So my response to this news is simply how many job cuts? Until we know that number, I do not think we can draw any meaningful conclusions.
Delta is cutting corporate jobs, but until we know how many it seems far-fetched to make any industry-wide conclusions. While it seems counterintuitive to make job cuts during a period of growth and profitability, it may be that one or more departments were simply a bit bloated.
image: Delta Air Lines