CCY Mgmt. Layoffs in October

[SSR]

I heard that, after a little over a year, there will be management layoffs once again in CCY, in October. (Last layoffs were Sept. 26, 2001.) It was thought that there would always be a fixed # of HDQ positions regardless of the amount of service out there, but with the upcoming reduction in service, senior management has identified more "opportunities" to cut middle and lower managers, especially those in pricing, inventory, and scheduling. (After all, you don''t need as many analysts to analyze a smaller market- but, perhaps these senior managers don''t realize that each analyst has been doing the job of 2 or 3 analysts for the past year!) This rumor after we are about to get the first of the new paycuts on September 6.
What a year, is all I can say!

 

[Oliver Stone''s Apprentice]

Some HDQ functions are definitely fixed numbers (i.e. things like purchasing, finance, and procedures apply regardless when serving 10 airports or 100 airports), but there are others which are staffed according to the size of the operation or the number of employees. As you mentioned, revenue management is one area. HR and passenger sales are others which seem to get hit harder than others...