American Airlines planning 13,000 layoffs, wage and benefit cuts for remaining workers

American Airlines is looking to make massive cuts to its workforce as it goes through bankruptcy. Really massive:

[I]t wanted a 20 percent reduction in salaries and benefits from its employees as well as a termination of their pension plans. It also said it wanted to cut about 13,000 workers, or 16 percent of its current work force.

The company, which filed for bankruptcy court protection in November, said it aimed to reduce overall costs by $2 billion a year, including $1.25 billion in employee savings. [...]

As to the job cuts, American said it was seeking the biggest reductions in the number of mechanics and other ground workers, about 4,600.

One way that American would likely cut mechanics would be to follow the lead of other airlines in taking planes overseas for major maintenance; currently, that work is performed by more than 8,000 union members at two facilities in the United States.

In light of American recently stiffing its pension fund, paying just $6.5 million of a $100 million obligation, the federal government's pension agency is letting the airline know that any attempts to walk away from the pension will be met with a fight.

The company isn't relying on its executives' expertise to squeeze its workers for every possible penny, either. Its American Eagle subsidiary is paying Bain & Company $525,000 a month for advice on how it can extract more from its workers.