United to trim management ranks

Bloomberg

United Continental Holdings Inc. expects to cut some management employees as it deepens efforts to reduce bureaucracy and catch up with the profit margins of industry leader Delta Air Lines Inc.
The third-largest US carrier will “continue to finalize the remainder of our management team” after overhauling its roster of corporate officers last year, according to a memo from Executive Vice President Mike Bonds to employees. The reduction won’t affect “front-line employees,” he said, referring to a group that typically includes pilots, flight attendants and customer-service and gate agents.
“While this will allow us to be more productive as we continue to drive and deliver on our strategy, it also means we expect an overall reduction in our management and administrative team,” Bonds said in the memo. “Our focus is to move through this process as quickly as possible, while ensuring that we go through each decision with a lot of thought, respect and care.”
Chief Executive Officer Oscar Munoz added a new chief financial officer and a new chief commercial officer in August, then surprised the industry by hiring a new president, Scott Kirby, who had previously held the same position at American Airlines Group Inc. Munoz told employees at the time that Kirby’s appointment was the “culmination of the formation of my leadership team.”
This year’s cuts will only affect a “small number” of managers, United spokeswoman Megan McCarthy said in an e-mailed statement, without providing a specific number. United’s memo to employees was reported earlier by PlaneBusiness Banter, an industry newsletter.
Munoz announced a sweeping review of United’s operations in June, when he pledged to close the persistent gap between its profit margin and Delta’s. Five months later, he elaborated on that plan by saying United would find $4.8 billion in savings and additional revenue.