American Airlines announces plans to cut thousands of jobs

POSTED: Wednesday, February 1, 2012 - 6:10pm

UPDATED: Wednesday, February 1, 2012 - 6:55pm

Officials at the nation's third largest airline said it is looking to cut 12,000 to 14,000 of its current workforce of 88,000 employees, and reduce its labor cost by as much as 20 percent. 

American executives say they hope to return the company to profitability by cutting spending by more than $2 billion per year and raising revenue by $1 billion per year.

American Airlines and its parent company, AMR Corporation, recently filed for bankruptcy in November after losing almost $900 million in the first nine months of 2011, and another 900 million in the month of December.

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