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Spokane, Washington  Est. May 19, 1883

Source: Management shake-up at Alaska Air will bring layoffs

Seattle Times

A management shake-up is underway at Alaska Air, the parent company of Alaska Airlines and regional carrier Horizon Air.

One manager, who asked not to be identified, said the re-organization will result in about 100 layoffs. The company would not confirm that number, but spokeswoman Bobbie Egan conceded that management layoffs are in the works.

“These will not be easy steps to take, but they are necessary to reset how management supports our frontline employees in a competitive environment,” Egan said via email.

Egan added that the company will prioritize “the respectful and compassionate treatment of affected people.”

No frontline employees will be laid off, Egan said. That includes pilots, cabin crew, gate agents, aircraft mechanics and engineers, operations center staff and employees working at call centers or airport lounges.

Facing tough competition from Delta and Southwest, Alaska has also been challenged by the integration of Virgin America airplanes and employees following the acquisition of the California-based airline almost two years ago.

Last year, a cost-cutting campaign drew employee and passenger complaints. This year, Alaska slowed the planned growth of its fleet and shifted some planes from unprofitable routes.

In July, while Alaska reported progress in the integration of Virgin America, profits were sharply down from a year earlier. Since the summer, the price of oil has risen to $80 a barrel from just over $70, increasing jet fuel prices and financial pressure on airlines.

A former manager who retired this summer said he isn’t surprised at the layoffs.

“They were so heavy at the top, even before they got together with Virgin,” the former manager said. “A blind man could have seen it coming.”