American and Delta are preparing for potentially massive layoffs

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American and Delta are preparing for potentially massive layoffs
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Plummeting demand for travel has forced two major US carriers — Delta Air Lines and American Airlines — to gut their workforces through voluntary exit programs and layoffs.

In a letter addressed to employees, American said Wednesday that it needs to eliminate about 30% of its management and support staff because of its transition into a smaller airline. In addition to the staffing cuts, the Dallas-based company said involuntary separation decisions will be communicated in July, and those staff members will be on payroll until September 30.

It's also offering another buyout that covers most of its 90,000-strong employees. Read MoreNeigher airline can enact the planned layoffs until October, once the limitation on the federal bailout lifts. Several US airlines accepted government money in April, including Delta, American, Southwest and United totaling roughly $50 billion.United warned in April that it was also planning to cut its employee count this fall after saying that travel demand is"near zero.

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