Technology

Gogo lays off 14 percent of its workers as airline industry struggles continue

In-flight Wi-Fi supplier Gogo is laying off 143 people, or about 14 percent of its workforce, as individuals continue to keep away from air journey in the course of the COVID-19 pandemic. The firm beforehand furloughed 600 workers and lower govt pay in April, and mentioned Thursday that it’s going to “continue certain furloughs and maintain the salary reductions that were previously implemented.”

The cuts will come “predominantly from the Company’s Commercial Aviation business,” based on a press launch issued Thursday. Gogo applied for CARES Act funding, nevertheless it’s unclear if it ever obtained any help.

“Based on our current expectations of the scope and timing of a recovery in the industry and our Commercial Aviation business, reducing our workforce has become a necessary step,” Oakleigh Thorne, Gogo’s CEO mentioned in an announcement. “We do not take this action lightly, but we believe it is critical in our efforts to preserve our financial flexibility, while maintaining the quality of our service and relationships with our customers.”

Gogo has not turned a revenue because it went public in 2013, and was present process a strategic shift of kinds earlier than the pandemic hit. The firm has been shifting its enterprise to rely extra on satellite-based web for its in-flight Wi-Fi providers. as a result of its present community remains to be closely depending on air-to-ground connections which can be inclined to interruptions and bandwidth points. The firm beforehand mentioned its plans to roll out a 5G network in 2021 had been unaffected by the furloughs, nevertheless it’s not instantly clear if that has modified.

Gogo just isn’t the one supplier dealing with pandemic-related struggles. Just final week, Global Eagle — which provides in-flight Wi-Fi to Southwest — filed for bankruptcy.

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