Sun Country Airlines will cut about 350 local jobs and and outsource the work to Global Aviation Services, starting on or about May 1.
The move will affect employees involved with cleaning, passenger service, ramp and baggage handling. Workers hoping to retain their jobs will be given "preferable access" to interviews with Global Aviation.
In a press release, Sun Country said it has been evaluating its operations with an eye toward ensuring the airline's viability.
"These decisions are always difficult to make," said CEO Jude Bricker.
The Eagan-based airline said it already works with Global at Southwest Florida International Airport and Tampa International Airport.
Sun Country has been changing its business model to be more like so-called low-cost carriers, adding, for instance, fees for carry-on bags.
The transformation was underway before Apollo Global Management, a New York-based investment group, bought Sun Country from Minnesota-based brothers Marty and Mitch Davis late last year. Terms of the sale were not disclosed.
For the four quarters ending last September, the airline had net income of $20 million on revenue of $568, according to regulatory reports. The airline carried about 2 million passengers during that period.