American Airlines (AAL) is eliminating hundreds of corporate jobs, including mid-management and support staff positions, Bloomberg reported. The move is likely part of its efforts to streamline operations and align staffing with current business needs. Following the news, AAL stock was down about 6% on Tuesday.
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The layoffs will primarily affect employees at the company’s Fort Worth, Texas headquarters, with roles in communications, commercial, finance, and technology among those impacted.
A spokesperson for the airline described the move as a “small reduction” aimed at right-sizing the organization following years of expansion. “We’re making a small reduction to our management and support staff team to right-size for the work we do today,” the company said in a statement.
Airlines Streamline Corporate Teams
The decision comes amid a shifting landscape for the airline industry. After a post-pandemic hiring surge, carriers are reevaluating staffing levels to manage costs and protect margins as per current travel demand.
Also, it comes as airlines move toward leaner corporate structures, increased automation, and strategic investment in customer-facing technologies. Earlier this year, Southwest Airlines (LUV) disclosed plans to lay off 1,750 employees, about 15% of the corporate workforce, as part of its cost-saving measures. This marked the first mass workforce reduction in the company’s history.
Is American Airlines a Buy, Sell, or Hold?
Turning to Wall Street, American Airlines’ stock has a Hold consensus rating based on four Buy, seven Hold, and one Sell recommendations assigned in the last three months. The average AAL price target of $14.82 implies 17.62% upside potential from current levels.
