AA Cuts 20 Percent of Senior Leadership Costs

Five officer positions eliminated, consolidated

American Airlines announced their plan Tuesday to reduce senior leadership costs by 20 percent.

AA said in a news release that this phase of the plan includes the elimination of five officer positions and that combined with previous organizational changes, they've made a 20 percent cost reduction in the company's senior leadership positions.

“Our organization redesign purposefully began at the top, and today’s changes will further advance the company’s restructuring objectives and bring us one step closer to ensuring American has the leanest, most capable and effective leadership team in the industry," said Tom Horton, AMR chairman and chief executive officer.

As part of the transition, Jeff Brundage will be leaving and his responsibilities within the human resources department will fall to Denise Lynn who has been named Senior Vice President - People.

Brundage has been one of the top people at AA supervising labor negotiations in recent years.

The reorganization is part of the company's bankruptcy plan to reduce total costs in each department by 20 percent, with all departments supporting that goal.

NBC 5's Scott Friedman contributed to this report.

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