Delta announce 6900 lay-offs.
CHICAGO — Delta Air Lines (DAL) said Wednesday it plans to eliminate between 6,000 and 6,900 jobs during the next 18 months, implement a 10% across-the-board pay reduction and reduce employee benefits.
Previously, the company said it needed to reduce staff by 7,000 in an effort to cut costs. Delta has more than 60,000 employees, according to its Web site.
Delta's board also approved using an exception to the New York Stock Exchange's shareowner approval policy in order for the carrier to give stock to employees and creditors in exchange for concessions meant to avoid a bankruptcy filing.
Delta said its audit committee determined the delay necessary to obtain shareowner approval of the issue would "seriously jeopardize the financial viability of the company."
The NYSE has accepted Delta's use of the exception.
The 75-million share issuance — which the company has said could dilute current shareholders' equity stake by about a third — is part of Delta's restructuring plan that aims to provide $5 billion in annual benefits by 2006.
The options will become exercisable in three equal installments on the first, second and third anniversaries of the grant date. Unexercised options will expire at the sixth anniversary of the grant date. Delta board members and officers won't participate in the programs.
The company also plans to issue up to 12 million common shares to certain debt holders and aircraft lessors.
These shares will be issued on or after Nov. 23.
The stock options for as many as 63 million shares that Delta has pledged to its 57,000 employees include 30 million options promised to the pilots in exchange for their negotiated concessions.
The company's restructuring plans originally called for the 7,000 pilots to get just under 13 million shares, while 50,000 nonunion employees were to receive roughly 25 million shares. But the pilots successfully bargained for non-union workers to get more stock options.
CHICAGO — Delta Air Lines (DAL) said Wednesday it plans to eliminate between 6,000 and 6,900 jobs during the next 18 months, implement a 10% across-the-board pay reduction and reduce employee benefits.
Previously, the company said it needed to reduce staff by 7,000 in an effort to cut costs. Delta has more than 60,000 employees, according to its Web site.
Delta's board also approved using an exception to the New York Stock Exchange's shareowner approval policy in order for the carrier to give stock to employees and creditors in exchange for concessions meant to avoid a bankruptcy filing.
Delta said its audit committee determined the delay necessary to obtain shareowner approval of the issue would "seriously jeopardize the financial viability of the company."
The NYSE has accepted Delta's use of the exception.
The 75-million share issuance — which the company has said could dilute current shareholders' equity stake by about a third — is part of Delta's restructuring plan that aims to provide $5 billion in annual benefits by 2006.
The options will become exercisable in three equal installments on the first, second and third anniversaries of the grant date. Unexercised options will expire at the sixth anniversary of the grant date. Delta board members and officers won't participate in the programs.
The company also plans to issue up to 12 million common shares to certain debt holders and aircraft lessors.
These shares will be issued on or after Nov. 23.
The stock options for as many as 63 million shares that Delta has pledged to its 57,000 employees include 30 million options promised to the pilots in exchange for their negotiated concessions.
The company's restructuring plans originally called for the 7,000 pilots to get just under 13 million shares, while 50,000 nonunion employees were to receive roughly 25 million shares. But the pilots successfully bargained for non-union workers to get more stock options.
Delta announce 6900 job losses