Wi-Fi provider Gogo fires 143 people, or about 14 percent of its workforce, because people continue to avoid air travel during the COVID-19 pandemic. The company had previously taken 600 leave on April and cut executive salaries. On Thursday, it announced that it would “continue certain vacation days and maintain the previously implemented pay cuts”.
The cuts will come “largely from the company’s commercial aviation business,” according to a press release released Thursday. Gogo applied for funding from the CARES Act, but it is unclear whether he has ever received support.
“Given our current expectations regarding the scale and timing of a recovery in the industry and our commercial aviation business, reducing our workforce has become a necessary step,”
Gogo has had no profit since going public in 2013 and went through some sort of strategic shift before the pandemic broke out. The company has shifted its business to focus on in-flight Wi-Fi services on satellite-based Internet. because his current network is still heavily dependent on air-to-ground connections that are susceptible to interruptions and bandwidth problems. The company previously said its plans to launch a 5G network in 2021 would not be affected by the holidays, but it was not immediately clear whether this had changed.
Gogo is not the only provider facing pandemic struggles. Just last week, Global Eagle – which provided the Southwest with WiFi during the flight – filed for bankruptcy.