United Airlines gives notice of mass layoffs at DIA
United Airlines could furlough more than 2,800 employees at Denver International Airport, months after receiving a $5 billion bailout from taxpayers.
The Denver Channel reports that a United executive vice president, Kate Gebo, wrote to the Colorado Department of Labor and Employment on Wednesday, warning that the company is spending more money than it is generating in revenue.
“Consistent with these plans, employment separations are expected to begin on or about October 1, 2020 or during the 14-day period thereafter,” Grebo explained. “Based on current demand, while we are hopeful the reductions for our frontline team members will be temporary, we presently anticipate that they will last six (6) months or longer.”
The federal Worker Readjustment and Retraining Notification Act requires employers with at least 100 full-time workers to provide 60 days notice for layoffs of 50 or more employees at a worksite.
Newsweek reports that United plans to lay off a total of 36,000 employees in the U.S. The move comes after the company received $3.5 billion in grants from the $1.8 trillion CARES Act, and another $1.5 billion in government loans.
“[A]s of mid-June, demand for air travel remains more than 90% lower than last year,” Grebo added in her letter. “So, even if demand continues to slowly improve, it is unfortunately very likely that we will need to adjust the size of the company to reflect lower demand levels.”


