7 Biggest Layoff Proclamations of 2012

2. Hostess

Hostess Brands that makes the popular cream-filled sponge cake finally decided to liquidate its assets and sack 18,500 employees after it failed to persuade employees on strike to return to work.

Hostess asked the bankruptcy court for permission to stop the company and gave reasons blaming the strike by the workers of the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union. Chief Executive Gregory Rayburn said, "We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," as quoted by LA Times.com.

3. AMR

AMR Corporation, the mother company of bankrupt American Airlines decided to cut of 13,000 employees in February, as a part of their surviving strategy in the market. In a letter to the employees AMR Chief Executive Tom Horton said, "As you know, our major competitors have used the restructuring process to overhaul their companies and become more competitive in every aspect of their business" reported Reuters.

The company also asked for Chapter 11 protection from creditors in November 2012 in New York claiming that AMR conceives higher labor costs compared to its rivals.

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