Air Wisconsin Layoffs at O'Hare: Over 200 Airline Jobs Cut Amid Restructuring
In early 2025, Air Wisconsin Airlines announced more than 200 layoffs at Chicago O'Hare International Airport as part of a broader operational restructuring. The regional carrier, which provides feeder service for larger airlines, made the decision following shifts in its service agreements and adjustments to its fleet operations.
Why the Layoffs Happened
The layoffs stemmed from changes in Air Wisconsin's partnerships with major carriers. After a contract realignment, the airline began reducing its flights and transitioning certain operations to other regional hubs. As a result, staffing needs at O'Hare decreased substantially.
This restructuring aligns with industry-wide trends where regional airlines are consolidating routes, updating fleets, and shifting labor resources to match new service patterns and cost-efficiency goals. The competitive pressure to maintain profitability amid fluctuating fuel prices and pilot shortages further contributed to the decision.
Impact on O'Hare Airport and Workers
The cuts affected a wide range of employees, including ground crew, customer service agents, and maintenance personnel. Many of these workers had longstanding roles at O'Hare, one of the busiest airports in the world.
Local labor organizations expressed concern over the timing and magnitude of the layoffs, noting the importance of regional carriers in supporting airport operations and community employment. Some support programs and job placement assistance were reportedly offered to help affected individuals transition.
Broader Industry Implications
Air Wisconsin’s restructuring highlights a growing trend in regional aviation: consolidation for survival. As mainline carriers streamline their regional partnerships, airlines like Air Wisconsin must continuously adapt to evolving business models, often at the cost of local jobs.
The layoffs at O’Hare underscore the challenges facing mid-size carriers and their employees in a highly competitive, contract-driven industry.
