Alaska cuts 10% of its jobs

Alaska Airlines said it is reducing capacity 8% compared to a year ago, effective with its winter schedule starting Nov. 9 and continuing into 2009. The reduction in capacity represents 15% fewer departures. As a result, Alaska Airlines is reducing its work force by 9 to 10%. “The one-two punch of record oil prices and a softening economy, on top of increased competition, has burdened Alaska Air Group with a $50 million loss on an adjusted basis for the first half of this year. That demands decisive action to ensure the viability of our company,” said Bill Ayer, Chairman and CEO of Alaska Air Group, the parent company of Alaska Airlines and Horizon Air. “We are changing our schedule to make sure we’re flying the right routes with the right frequency and right aircraft. Regrettably, a reduced schedule means we need fewer employees.”