DENVER (CBS4)– United Airlines has warned employees in Denver that layoffs may be on the horizon. There are abut 7,000 employees with United Airlines in Colorado.

United is planning to layoff abut 2,800 of them by Oct. 1. Passenger traffic for United is expected to be down 75% this month.

(credit: CBS)

United says it cannot continue at the current payroll level past October in an environment where travel demand is so depressed because of the coronavirus pandemic.

In a letter, United’s CEO said, While the Payroll Support Program under the CARES Act helped to protect jobs through September 30, it only covers a part of our normal monthly payroll cost and none of our sizable operating expense. That is why we have been so aggressive and proactive in reducing costs in nearly every aspect of our business. Across the company, we have already reduced planned capital expenditures and operating and partner expenditures. We have also suspended raises and implemented a schedule reduction for management and administrative employees, frozen hiring, introduced voluntary leave and separation programs, reduced pay for all executives and cut our CEO and President’s base salaries by 100%, among other cost-saving measures.

The CEO goes on to state that the workforce will be reduced at all of its facilities at Denver International Airport and that the reductions may be temporary.

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