American Airlines to Cut Spending and Up to 14,000 Jobs (AAMRQ)

AMR Corp. (PinkSheets: AAMRQ) will cut $2 billion in costs, raise revenue by $1 billion, and trim its employee costs by 20% in an effort to escape from bankruptcy protection. The company’s CEO reckons that American will need to lose 12,000-14,000 employees to reach the savings target.

The company did not say how it would make changes to its employee pension plans, but any restructuring will almost surely include cuts to employee pension payments. The US Pension Guaranty Corp. has said it will oppose any effort by AMR to close the pension plans unless the company can prove that it has no other chance to survive.