Cost-cutting continues

Tuesday, Oct. 22, 2002 | 11:14 a.m.

CHICAGO -- A modest round of layoffs and other new cost cuts are just the beginning for ailing United Airlines as it takes off into the uncharted skies of a huge financial restructuring.

The world's second-biggest carrier said it plans to announce additional adjustments to its staffing level and flight schedule this week as it strives to shed enough costs to steer clear of bankruptcy.

"These painful cuts will lower some of our costs, but they will not provide the labor-cost savings we need for our recovery plan to succeed," Chief Executive Glenn Tilton said Monday as he disclosed 1,250 layoffs, or 1.5 percent of United's work force.

The new initiatives also include closing three reservation centers and a maintenance line and shifting to United Express service in five cities. The carrier expects to save about $100 million a year.

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