United Airlines COO says employees should ‘seriously consider’ voluntary separation from the airline

In a note to some United Airlines employees obtained by CNN Business, Greg Hart – the company's chief of operations – said the airline will need to "properly size" the workforce.

"You may want to seriously consider whether you are able to make a voluntary separation," Hart wrote. He added: "You, alone, can decide whether a [Voluntary Separation Program] works for you and your family. "


Hart said management salaries have been cut and that the airline is trying to be transparent with its rank and file workforce.

"We acknowledge that this is painful news, but it gives what we believe is the most accurate assessment of what lies ahead," he said.

united (UAL) announced last month that it cut the plan for May and June by about 90% of what was originally planned at the beginning of the year.
The airline is barred from laying off for the next six months under a federal financial aid package that will give it around $ 5 billion, even as it prepares to cut staff as soon as October 1, according to an April letter sent to staff by CEO Oscar Munoz and President Scott Kirby.
US airlines have fallen on hard times. Last week, United reported the first loss since 2014. In total, it reported a loss excluding special items of $ 639 million, worse than the approximately $ 500 million loss that analysts surveyed by Refinitive expected. Net loss for the quarter was $ 1.7 billion.
Also last week, American Airlines (EEL) posted a significantly worse loss than expected in the first quarter, the first loss since bankruptcy six years ago. And Southwest Airlines (LUV) reported his first quarterly operating losses since the deep recession of 11 years ago.
Over the weekend, famed investor and CEO of Berkshire Hathaway, Warren Buffett revealed that the company recently sold its entire holdings in the four airlines it owned, it calls it a mistake to invest in the industry.
Berkshire Hathaway revealed in early April that it was trimming its efforts Participate (VALLEY) and southwest. But in response to a question from a Berkshire shareholder, Buffett said the company sold all its shares in Delta and Southwest, as well as United and American, because he believes it will take years for the flight to recover.

– Chris Isidore and Paul La Monica contributed to this report.


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