Bankrupt American Airlines says it has to cut costs 20 percent as it tries to reorganize and return to profitability.

Media reports say the airline plans to eliminate 13,000 jobs, from management all the way down to maintenance workers. The airline’s chief executive, Thomas Horton, says in a letter to employees that American will use the restructuring process to make what he says are necessary changes.

American says it has to cut spending by more than $1 billion a year if it is to survive in the highly-competitive air carrier business.

American Airlines filed for bankruptcy last year. It lost nearly $1.8 billion in 2011.