Delta to cut mgmt. employees

[Kev3188]

Not a whole lot of specifics yet, but still sh*tty news. Guess we know how at least some of these base rate increases are being funded...

http://seekingalpha.com/news/2810936-delta-set-to-cut-jobs-among-its-office-workers?dr=1#email_link

 

[WorldTraveler]

DL has often accompanied early out packages with plans to shrink the workforce.

The mgmt. cuts are tied more to the early out package than to the fact that other people will get raises.

Not everyone ends up in the top categories on DL's evaluation process. If they did, then the process isn't realistic or accurate.

 

[jcw]

That is how they are paying for the increases

 

[eolesen]

Not everyone ends up in the top categories on DL's evaluation process.

Thanks for finally explaining to all of us the reasons behind your own early-out.


http://www.bloomberg.com/news/articles/2015-10-02/delta-air-plans-cuts-in-office-workforce-to-boost-productivity

Purging the bottom 10% of the company is one of the theories that management consultants love to push. Both AA and UA seem to have publicly kicked out management consultants. Maybe DL should do likewise.

 

[jimntx]

Another company that famously used that theory of purging the bottom 10% was Enron.  Remember them?

 

[WorldTraveler]

Whether there is a purging of X percent of mgmt. or not, the theory is practiced.

AA and UA have just done it more recently thru mergers which still are in process and which have resulted in mgmt. cuts. AA and UA mgmt. ranks are smaller than they were a couple years ago... that is a fact. at least in the case of AA, there will continue to be shrinkage. Merged efficient companies are able to use less people. I don't know of a single function that DL is doing that still retains separate or parallel PMNW and PMDL processes or technology.... perhaps Kev or dawg can speak up if that still exists. There are many separations that still exist at AA and UA, and perhaps even WN.

And given that DL says that they are able to do it based on increased productivity, they very well could be using technology and improved processes in order to operate more efficiently.

regardless of the reason, DL has done this before and so have other companies, even while adding to frontline worker ranks.

 

[jcw]

interesting - people are losing their jobs

 

[WorldTraveler]

again, DL frequently provides early retirement or separation packages at the time it does any reduction in force....and so do most airlines.

Let us know what UA did during the relocation process from IAH and what AA is doing now as it consolidates facilities at the expense of PIT and PHX based employees. and what WN did with ex-FL mgmt. people

the only difference is that DL is thru with the merger but companies do reduce mgmt. headcount.

 

[700UW]

All PIT and PHX employees got moving packages.

 

[WorldTraveler]

and all DL mgmt. people have the option to accept a package if they choose to take it.

and DL and NW employees who were involved in the merger consolidation process ALSO got moving packages.

there is nothing any different about what DL is doing that hasn't occurred elsewhere.

 

[Kev3188]

interesting - people are losing their jobs

And during an era of unprecedented prosperity at that...

 

[WorldTraveler]

you do realize that companies don't keep people on the payroll or give employees pay raises just because the company is making money?

 

[jcw]

And during an era of unprecedented prosperity at that...

 
Exactly - maybe just do a 10% raise and keep everyone and let things go through attrition - however I'm sure there will be more shoes to drop due to the raises - the drastic increase in costs have to come from somewhere

 

[metopower]

So DL is going to reduce management by early outs. And Kev and the unionistas are complaining? Glad they're looking out for the other side too.

 

[robbedagain]

of course the mgmt. peeps would get nice buy out packages    but when it comes to slashing other positions  its tough $h!t