HOUSTON -- Houston-based Continental Airlines is cutting hundreds of jobs and more than half of the layoffs involve local employees, KPRC Local 2 reported Wednesday.

Airline officials said about 270 jobs in the Houston reservations call center will be lost. About 500 reservation agent positions will be eliminated across the company, with 100 of the eliminated positions in Tampa and 80 jobs in Salt Lake City.

The Houston-based carrier cited the weak economy and the growing preference of customers to use Web-based reservations.

The company is offering a number of voluntary programs to employees, including "early out" severance and leave of absence programs.

Some Tampa-based reservations agents will also have the option of transferring to other reservations centers in Houston and Salt Lake City. The closure will be completed by July 19.

University of Houston Professor Darren Bush studies the airline industry. He said he believes Continental is blaming technology for bigger financial problems.

"I think the recession took them by surprise as far as how hard it was going to hit them and the traveling public. The Web's been around for a long time. I don't see it as suddenly jumping up and saying, 'We have to cut these positions,'" Bush said. "They are suffering more because they are locked into contracts. They have labor issues. They have unions."

Employees in other departments said they are worried for their coworkers.

"Where else are you going to go? We employ a lot of people in Houston, so it's rough," Terra Lore said.

Continental has more than 43,000 employees.

Continental Employee Bulletin

Continental released the following employee bulletin.

"In response to reduced call volumes caused by a customer shift towards Web self-service and the global economic recession, Continental will eliminate approximately 500 positions in its Reservations department and close its Tampa Reservations Center effective July 19, 2009.

"We must make these changes to adapt to changing customer preferences toward the Web," said Reservations and eCommerce VP Martin Hand. "Adding to the structural decline in call volumes caused by the Web has been the effect of the global recession, which has resulted in fewer calls into our reservations centers.

"The company is offering a number of voluntary programs to employees, including an early-out severance program and Company Offered Leaves of Absence (COLAs). In addition, Tampa Reservations agents who otherwise would not be furloughed will have the option of transferring to other Reservations centers located in Houston and Salt Lake City.

"Continental will also offer outplacement services at all three Reservations centers and relocation assistance to affected employees."