Alaska Air Group cuts 200 noncontract jobs, limiting $700 million loss
Business
Alaska Air Group is letting go of about 200 noncontract employees because fuel prices have shot up, thanks to global tensions.
This move is aimed at keeping the company's potential $700 million annual loss in check.
The cuts affect less than 1% of staff and won't touch frontline workers.
Laid-off employees get pay and severance
Those losing their jobs will get paid through December plus severance.
Even with these tough calls, Alaska Air Group actually saw a 14% jump in revenue last quarter, but profits took a hit from an extra $1.8 billion spent on fuel this year.
Despite all this, the airline still plans to grow its premium and international flights, though CEO Ben Minicucci says they'll need to be extra careful with spending moving forward.