AMR to Trim 13,000 Jobs in Plan for $2 Billion in Cost Cuts

AMR Corp.’s American Airlines said it will eliminate 13,000 jobs under a plan to cut annual operating costs by $2 billion and boost revenue by $1 billion as the company restructures in bankruptcy.

All work groups, including management, will see a 20 percent reduction in costs and the company plans to terminate its four pension plans, Chief Executive Officer Tom Horton told labor leaders in a meeting today. The job cuts would be about 18 percent of American’s 73,800 employees.