Houston Jobs Cut by Continental and United Merger

The merger of two prominent airlines will result in the loss of Houston jobs.

Continental and United Airlines recently announced plans to merge, a move that will create the largest airline in the world, but also will result in some job losses.

The exact number of jobs that will be lost as a result of the $3.2 billion deal has not yet been released, but it is expected that positions in Houston and Chicago - where the company's new headquarters will be located - will be affected.

Continental currently employs 17,000 workers in Houston, with about 3,000 of those working at the company's downtown headquarters.

"There will be people who will lose their jobs at 1600 Smith (Continental's downtown headquarters), just as there will be people who will lose their jobs in Chicago," Continental CEO Jeff Smisek told the Houston Chronicle. "You eliminate duplicate functions. That's part of the savings of a merger."

Smisek will become CEO of the new airline and move to Chicago while keeping an office in Houston. Glenn Tilton, current chairman, president and CEO of United, will serve as non-executive chairman of the new airline's board until Dec. 31, 2012.

Continental officials have said that Houston will remain a top employer for the new airline, as the area will continue to serve as the company's Latin American global gateway. In addition, the company will continue supporting local arts, sports and charitable organizations.

And despite the pending job losses, Continental expects that Houston will eventually see an increase in jobs as the airline's hub at Bush Intercontinental Airport expands.

United will be the largest private employer in Chicago after moving its operations from nearby Elk Grove to downtown Chicago. The city is offering United $35 million in economic incentives for the move.