United AirlinesTo Cut 16,000 Jobs As Federal Aid Dries Up And Air Travel Stalls

United Airlines (UAL) said it will cut more than 16,000 jobs in October as its federal government aid runs out, and the demand for air travel continues to stall, CNBC reported.

The news that United is cutting thousands of jobs follows an announcement last week by American Airlines, which said as many as 19,000 employees would be eliminated unless more federal funding is provided by the U.S. government.

In July, United warned that it would cut as many as 36,000 jobs, but employee volunteers took buyouts, early retirement packages, temporary leaves, or reduced their schedules to accommodate the airline’s need for a reduced workforce. More than 7,000 workers participated in the program, allowing United to reduce necessary involuntary employee cuts in October, CNBC reported.

The involuntary cuts will affect 17% of United’s 2019 workforce level, with layoffs impacting as many as 6,920 flight attendants, 2,850 pilots, 1,400 management jobs, 2,010 mechanics, and 2,260 positions in airport operations, with the majority of layoffs occurring on Oct. 1, the Chicago Tribune reported.

The job cuts were announced to employees in a memo obtained by the news outlet that read in part, “The pandemic has drawn us in deeper and lasted longer than almost any expert predicted, and in an environment where travel demand is so depressed, United cannot continue with staffing levels that significantly exceed the schedule we fly.”

United, along with several other major airlines, have signed letters of intent to receive another $25 billion in federal aid. The funding would keep jobs in place until the end of March, but a new coronavirus relief package has yet to be approved by legislators.

Initially, airlines were provided relief under the $2.2 trillion CARES Act to prevented them from cutting jobs or worker pay through Sept. 30.

Shares of United were trading at $36.19 as of 12:26 p.m. EDT, up 18 cents or 0.50%.