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JetBlue is reducing staffing levels at support centers as part of an effort to bring down structural costs.
“We aren’t disclosing a specific number today, but the reductions are a combination of voluntary buyouts, elimination of open positions and involuntary departures,” vice president of communications Doug McGraw said in an email on Friday. “While the primary objective is to enable faster decision-making and streamline how teams work together so we can deliver on our strategic objectives, the restructuring also is a meaningful step toward our corporate structural cost goal.”
No cutbacks will be made to the airline’s frontline employees.
JetBlue undertook an organizational-structure review following its May decision to make Joanna Geraghty president, a title previously held by CEO Robin Hayes. With the move, Geraghty was put in charge of day-to-day operations.
JetBlue will report its second-quarter results next week. In the first quarter, the carrier reported pretax income of $110 million, down from $121 million a year earlier. Labor costs were up 7%.
McGraw said JetBlue will continue to hire strategically in its support centers.
“We need to make these difficult decisions to ensure we are set up for success,” he said.
Source: travelweekly.com
