An American Airlines worker reveals why he’s giving up his dream job — and his paycheck — to take a buyout (AAL)

As airline employees brace for coming layoffs, their companies have announced buyout offers, part of an effort to reduce the ranks through voluntary departures rather than layoffs.While it might seem reasonable for workers to take their chances, some are choosing to take the buyouts, opting for a degree of certainty and the continuation of at…

As airline employees brace for coming layoffs, their companies have announced buyout offers, part of an effort to reduce the ranks through voluntary departures rather than layoffs.While it might seem reasonable for workers to take their chances, some are choosing to take the buyouts, opting for a degree of certainty and the continuation of at least some benefits.We spoke with an American Airlines employee who has decided to take a buyout, who explained why he’s giving up his dream job and his paycheck.Visit Business Insider’s homepage for more stories.

With layoffs looming across the US airline industry, carriers are trying to avoid forced job cuts by offering employees incentives to leave voluntarily.In recent days and weeks, major airlines including American, Delta, and United have announced voluntary buyout offers for some employees. American and United’s offers were for managers, along with support and administrative workers. Offers for frontline employees are coming.The offers all involve an element of continued pay for at least a few months, medical coverage, and ongoing employee travel benefits.Whether to accept the buyouts or not can be a difficult choice for workers for whom it’s not easy to determine whether they’ll be targeted by layoffs. American and United have both said they expect to lay off around 30% of administrative and management workers, while Delta has not publicly stated a number.

For many airline workers, their job is just that: a job. You go in, do your day’s duties, and head back home. Or in the case of flight crews, go in, work your trips, and then forget about what was likely just another day in the office.For a subset of employees, though, working for an airline in any capacity is a dream come true.Aviation enthusiasts, or “AvGeeks,” permeate virtually every work group in the airline industry. For them, every day is a thrill, a chance to be a part of an unfathomably large and complex global machine that makes criss-crossing the world as easy as a few taps on a smartphone.Plus, the access they have at work affords opportunities to go plane-spotting every day, seeing the newest jets, liveries, and airlines, and in some cases, rare, once-in-a-lifetime sightings.

Not to mention the employee travel benefits, which provide the opportunity to fly on different types of planes and airlines, to destinations all over the world, for little or no cost.John is one of those employees (his name has been changed for this article, at his request).In his three years at American — and three years at a smaller airline before that —
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Shifting Gears: Meet Amazon’s most important man who’s not Jeff Bezos (AMZN, TSLA, UBER, UAL, AAL)

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How to Support Your Remaining Employees After a Layoff

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We’ve made our coronavirus coverage free for all readers. To get all of HBR’s content delivered to your inbox, sign up for the Daily Alert newsletter.
Just weeks into the coronavirus pandemic, unemployment claims soared past 30 million. Understandably, the focus is on those who are now jobless, whose job prospects and long-term security are suddenly unclear. What’s often overlooked in the economic reckoning, though, are the employees whose jobs were spared.
While some may feel lucky to still be employed, others may experience mixed feelings. They may be relieved to still have a job but simultaneously guilt-ridden about the suffering of former colleagues who were let go. This type of “survivor guilt” is normally associated with the emotions people experience after facing a traumatic event or accident that look the lives of others, but it can also happen after corporate layoffs. It’s not uncommon for the employees left standing to wonder, Why did I make it, but they didn’t? or How am I going to face my friends who were released knowing that they’re in a tenuous financial situation while I’m still employed? Survivor guilt may be exacerbated by a perception that the company failed to recognize or reward trusted colleagues and friends and instead eliminated them.
Further Reading

Studies show that nearly three-quarters (74%) of employees retained after a layoff saw their productivity decline after it, while 69% said that the quality of their company’s product or service deteriorated. When these respondents were asked why they felt that way, they expressed feelings of guilt, anxiety, and anger. The good news is that workers who felt that their managers were visible, approachable, and open were more than 70% less likely to report a productivity drop, and 65% less likely to report a decline in the quality of their organization’s offerings. These numbers show that leaders can make a big difference in helping retained employees deal with their survivor guilt. Here’s how.
Remember that work and life are interconnected
“Coworkers can become some of our closest friends, making work a trigger for pain,” says Jennifer Moss, author of Unlocking Happiness at Work. Losing a coworker to a layoff evokes feelings of grief, explains Moss. ?
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Fear and anger are growing inside United Airlines, where workers are slamming the company over pay cuts after it took billions of dollars in government bailout money

United Airlines employees help a passenger at LaGuardia Airport, Saturday, March 21, 2020, in New York, N.Y.AP Photo/Mary AltafferUnited Airlines has cut work hours for its managers and administrative (M&A) employees, and warned that layoffs are coming.However, workers say that the cuts violate terms of the CARES Act bailout, prohibiting pay cuts or furloughs before…

United Airlines employees help a passenger at LaGuardia Airport, Saturday, March 21, 2020, in New York, N.Y.AP Photo/Mary AltafferUnited Airlines has cut work hours for its managers and administrative (M&A) employees, and warned that layoffs are coming.However, workers say that the cuts violate terms of the CARES Act bailout, prohibiting pay cuts or furloughs before September 30.Business Insider spoke with United M&A workers who described stress, anxiety, and frustration with the airline as they prepare for what could be massive job cuts.Are you an employee at United or another airline? Contact this reporter with your thoughts or tips at dslotnick@businessinsider.com.Visit Business Insider’s homepage for more stories.Video: Flight attendants on how COVID-19 has affected their jobsTwo months after United Airlines agreed to terms with the federal government and accepted a $5 billion bailout for payroll support, workers at United Airlines are accusing the airline of breaking its promise.Earlier this month, United announced that it would require management and administrative (M&A) employees to take 20 unpaid days off between May 15 and September 30. The requirement came as airlines around the globe — including United — reduced flights and grounded portions of their fleets due to a collapse in travel demand during the coronavirus pandemic.The airline also warned that it would need to reduce its M&A payroll by “at least” 30% — American has announced similar plans.However, under the federal CARES Act, the $2 trillion financial package passed in late March, airlines accepting certain types of aid as part of a $25 billion payroll protection scheme are prohibited from laying off, furloughing, or otherwise cutting employee pay until after September 30.Airlines receiving a portion of that aid are also temporarily prohibited from buying back stock or paying dividends to shareholders, and are required to cap executive salaries.United agreed to the terms with the US Treasury Department to receive $5 billion in aid under the payroll program. Seventy percent of that is in the form of grants, while 30% — about $1.5 billion — is available as low-interest loans, which must be paid back. In a memo to employees in April, then-CEO Oscar Munoz and President Scott Kirby (Kirby took over as CEO in May, part of a planned transition) said that amount would not cover the airline’s total payroll expense, which “only represents about 30% of our total costs.”According to a United spokesperson, the required days off are not considered a furlough and comply with the CARES Act because they do not involve a reduction in pay rate, only in the number of hours worked.Lawmakers have contested that interpretation. Sen. Elizabeth Warren of Massachusetts and several House Democrats have written to airlines and the Treasury Department in recent days arguing that the hourly cuts broke both the spirit and the letter of the CARES Act. Cutting hours, but not the workloadIn interviews with Business Insider, several United employees who work in M&A roles said they saw the unpaid time off as a violation of the requirements and the spirit of the CARES Act.Another employee, Kenneth England, filed a class-action suit against the airline. In a statement, one of England’s lawyers, Douglas M. Werman, said the lawsuit raised important issues about who the stakeholders of the payroll support program actually are.”Our view is that one stakeholder is United’s own employees, and that the terms of the PSP Agreemen
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Fear and anger are growing inside United Airlines, where workers are slamming the company over pay cuts after it took billions of dollars in government bailout money (UAL)

United Airlines has cut work hours for its managers and administrative (M&A) employees, and warned that layoffs are coming.However, workers say that the cuts violate terms of the CARES Act bailout, prohibiting pay cuts or furloughs before September 30.Business Insider spoke with United M&A workers who described stress, anxiety, and frustration with the airline as…

United Airlines has cut work hours for its managers and administrative (M&A) employees, and warned that layoffs are coming.However, workers say that the cuts violate terms of the CARES Act bailout, prohibiting pay cuts or furloughs before September 30.Business Insider spoke with United M&A workers who described stress, anxiety, and frustration with the airline as they prepare for what could be massive job cuts.Are you an employee at United or another airline? Contact this reporter with your thoughts or tips at dslotnick@businessinsider.com.Visit Business Insider’s homepage for more stories.

Two months after United Airlines agreed to terms with the federal government and accepted a $5 billion bailout for payroll support, workers at United Airlines are accusing the airline of breaking its promise.Earlier this month, United announced that it would require management and administrative (M&A) employees to take 20 unpaid days off between May 15 and September 30. The requirement came as airlines around the globe — including United — reduced flights and grounded portions of their fleets due to a collapse in travel demand during the coronavirus pandemic.The airline also warned that it would need to reduce its M&A payroll by “at least” 30% — American has announced similar plans.However, under the federal CARES Act, the $2 trillion financial package passed in late March, airlines accepting certain types of aid as part of a $25 billion payroll protection scheme are prohibited from laying off, furloughing, or otherwise cutting employee pay until after September 30.

Airlines receiving a portion of that aid are also temporarily prohibited from buying back stock or paying dividends to shareholders, and are required to cap executive salaries.United agreed to the terms with the US Treasury Department to receive $5 billion in aid under the payroll program. Seventy percent of that is in the form of grants, while 30% — about $1.5 billion — is available as low-interest loans, which must be paid back. In a memo to employees in April, then-CEO Oscar Munoz and President Scott Kirby (Kirby took over as CEO in May, part of a planned transition) said that amount would not cover the airline’s total payroll expense, which “only represents about 30% of our total costs.”According to a United spokesperson, the required days off are not considered a furlough and comply with the CARES Act because they do not involve a reduction in pay rate, only in the number of hours worked.Lawmakers have contested that interpretation. Sen. Elizabeth Warren of Massachusetts and several House Democrats have written to airlines and the Treasury Department in recent days arguing that the hourly cuts broke both the spirit and the letter of the CARES Act. 

In interviews with Business Insider, several United employees who work in M&A roles said they saw the unpaid time off as a violation of the requirements and the spirit of the CARES Act.Another employee, Kenneth England, filed a class-action suit against the airline. In a statement, one of England’s lawyers, Douglas M. Werman, said the lawsuit raised important issues about who the stakeholders of the payroll support program actually are.”Our view is that one stakeholder is United’s own employees, and that the terms of the PSP Agreement” — Payroll Support Program — “between United and the Treasury Department plainly precludes United’s Unpaid Time Of
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Magic Leap CEO Rony Abovitz is out

Magic Leap talked a big game, and few were more responsible for fostering a cult of hype and excitement around its vision of the future than the company’s founder and CEO Rony Abovitz. Today, the CEO announced that the company has indeed secured a new bout of funding, but that the company will be attempting…

Magic Leap talked a big game, and few were more responsible for fostering a cult of hype and excitement around its vision of the future than the company’s founder and CEO Rony Abovitz. Today, the CEO announced that the company has indeed secured a new bout of funding, but that the company will be attempting to mount a major turnaround without him at the helm.
According to a memo sent to staff, first obtained by Business Insider, Abovitz will continue on with the company through a transition period but that the company has been “actively recruiting candidates” to replace him.
“We have closed significant new funding and have very positive mom
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Mirantis releases its first major update to Docker Enterprise

In a surprise move, Mirantis acquired Docker’s Enterprise platform business at the end of last year, and while Docker itself is refocusing on developers, Mirantis kept the Docker Enterprise name and product. Today, Mirantis is rolling out its first major update to Docker Enterprise with the release of version 3.1. For the most part, these…

In a surprise move, Mirantis acquired Docker’s Enterprise platform business at the end of last year, and while Docker itself is refocusing on developers, Mirantis kept the Docker Enterprise name and product. Today, Mirantis is rolling out its first major update to Docker Enterprise with the release of version 3.1.
For the most part, these updates are in line with what’s been happening in the container ecosystem in recent months. There’s support for Kubernetes 1.17 and improved support for Kubernetes on Windows (something the Kubernetes community has worked on quite a bit in the last year or so). Also new is Nvidia GPU integration in Docker Enterprise through a pre-installed device plugin, as well as support for Istio Ingress for Kubernetes and a new command-line tool for deploying clusters with the Docker Engine.
In addition to the product updates, Mirantis is also launching three new support options for its customers that now give them the option to get 24×7 support for all support cases, for example, as well as enhanced SLAs for remote managed operations, designated customer success managers and proactive monitoring and alerting. With this, Mirantis is clearly building on its experience as a managed service provider.
What’s maybe more interesting, though, is how this acquisition is playing out at Mirantis itsel
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Total US unemployment shrinks for the first time since coronavirus layoffs began in March

Roughly 21.1 million Americans claimed unemployment insurance in the week that ended on May 16, a decline from the previous week’s record of roughly 25 million, the Labor Department said on Thursday.It was the first time that continuing claims, reflecting those receiving unemployment benefits, had declined since coronavirus-related layoffs began in March.It’s a sign that…

Roughly 21.1 million Americans claimed unemployment insurance in the week that ended on May 16, a decline from the previous week’s record of roughly 25 million, the Labor Department said on Thursday.It was the first time that continuing claims, reflecting those receiving unemployment benefits, had declined since coronavirus-related layoffs began in March.It’s a sign that hiring may be rebounding slightly as states continue reopening their economies from shutdowns to curb the spread of COVID-19.Visit Business Insider’s homepage for more stories.

This week’s jobless-claims report contained a surprise: Total unemployment dipped for the first time since layoffs due to the coronavirus pandemic began in March.The Labor Department said on Thursday that 21.1 million Americans claimed unemployment insurance in the week that ended on May 16, a decline from the previous week’s record of roughly 25 million. Total unemployment, reflected in continuing claims, lags behind initial-claims data by one week.”It’s still an extremely large number, but if the number of people continuing to file for unemployment benefits is decreasing then this should be viewed as a positive for the economy as more people are going back to work as states begin the re-opening process,” Chris Zaccarelli, the chief investment officer of the Independent Advisor Alliance, said in an email.

Andy Kiersz/ Business Insider

Read more: A part-time real-estate investor quit his traditional job 5 years after snagging his first deal. He shares his no-hassle strategy that’s allowed
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Leaked memo reveals American Airlines is offering up to a decade of free flights and frequent-flyer miles to some employees who voluntarily quit ahead of layoffs (AAL)

American Airlines is offering up to 10 years of free flight benefits for management and support employees who quit ahead of layoffs, according to a memo seen by Business Insider.The airline said it will need to reduce its management and support staff by about 30% — or about 5,000 workers.Other benefits in the buyouts include…

American Airlines is offering up to 10 years of free flight benefits for management and support employees who quit ahead of layoffs, according to a memo seen by Business Insider.The airline said it will need to reduce its management and support staff by about 30% — or about 5,000 workers.Other benefits in the buyouts include frequent-flyer miles and continued health coverage for a longer period.Visit Business Insider’s homepage for more stories.

American Airlines announced a new series of buyout offers for its management and support employees late Wednesday, offering benefits such as free flights and continued pay in exchange for voluntarily separating from the company.The offers come on the heels of a similar offer from United Airlines, and as US airline workers brace for layoffs that are expected to be severe later this fall.In a memo to the employees seen by Business Insider, the airline outlined its new Voluntary Early Out Program, or VEOP, offering two options for US-based workers to take.”Running a smaller airline means we will need a management and support staff team that is more efficient and roughly 30% leaner than it is today,” Caroline Clayton, American’s managing director of corporate communications, wrote in a document outlining the VEOP details.

Employees must apply for the programs by June 10, and would be eligible to be rehired at a later point, a spokesperson for the airline confirmed to Business Insider.”If there are not enough team members who opt into the VEOP, we will need to look to involuntary
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41 Million People Have Applied for U.S. Jobless Aid Since Pandemic Started, But Layoffs Slow

(WASHINGTON) — Roughly 2.1 million people applied for U.S. unemployment benefits last week, a sign that companies are still slashing jobs in the face of a deep recession even as more businesses reopen and rehire some laid-off employees. About 41 million people have now applied for aid since the virus outbreak intensified in March, though…

(WASHINGTON) — Roughly 2.1 million people applied for U.S. unemployment benefits last week, a sign that companies are still slashing jobs in the face of a deep recession even as more businesses reopen and rehire some laid-off employees.
About 41 million people have now applied for aid since the virus outbreak intensified in March, though not all of them are still unemployed. The Labor Department’s report Thursday includes a count of all the people now receiving unemployment aid: 21 million. That is a rough measure of the number of unemployed Americans.
The national jobless rate was 14.7% in April, the highest since the Great Depression, and many economists expect it will near 20% in May.
States are gradually restarting their economies by letting some businesses — from gyms, retail shops and restaurants to hair and nail salons — reopen with some restrictions. As some of these employers, including automakers, have recalled a portion of their laid-off employees, the number of people receiving unemployment benefits has fallen.
First-time applications for unemployment aid, though still high by historica
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