American Airlines to lay off 656 workers as it consolidates customer support

American Airlines Group Inc. will lay off 656 employees who help passengers with lost luggage and other travel problems as their jobs are consolidated into other teams. 

The change will affect 335 employees in Phoenix and 321 in Dallas-Fort Worth who work on American’s customer relations, central baggage resolution and AAdvantage loyalty program service groups, the carrier said Monday. That’s 8.2% of about 8,000 employees charged with resolving customer problems. 

Some of the workers’ responsibilities will be moved to a new, smaller “Customer Success” team that will be split between Phoenix and Dallas-Fort Worth. This team will aid travelers with multiple problems in one trip, such as a canceled flight and lost bag. Passengers currently have to seek help from separate teams for each issue, American said. The number of passengers with several problems varies depending on weather and other factors.

Remaining functions, including single, easily addressed issues like a damaged suitcase, will be shifted to existing international contact centers run by American and its partner airlines. Those centers, mostly belonging to American, operate daily around the clock, the airline said.

A few US carriers, pressured by expensive new union contracts and higher prices for everything from plastic cups to engine parts, have offered voluntary departure packages or laid off some salaried employees. Those include Spirit Airlines Inc. and Delta Air Lines Inc. in November, according to CNBC. Earlier in 2023, American cut about 40% of its 350-person sales team, the Wall Street Journal reported, as it moved to direct dealings with corporate customers. 

American’s new team “will be dedicated to providing more convenient and elevated support,” said Carolyne Truelove, vice president of reservations and service recovery. “We’re providing 24/7 support,” she said, despite contact volume falling 17% in 2023 from 2022.

The laid-off employees will remain on the job through March 30 and will have the first opportunity to apply for 135 spots that make up the new Customer Success team. Those who aren’t hired for that team will be able to apply for 800 open jobs elsewhere at American, and those who leave the carrier will get severance and job placement support. 

The affected workers are split among working at American offices and remotely, and no facilities will close as a result of the layoffs, American said. The carrier has about 132,000 employees at its main airline and three wholly owned regional partners.