Gogo, an in-flight Wi-Fi provider, announced it would cut 143 jobs, or about 14 percent of its workforce, as people continued to avoid air travel during the COVID-19 pandemic,media The Verge reported. The company cut 600 jobs in April and cut executive pay. The company said Thursday it will “continue to make some of the layoffs and maintain the previouspay cuts.”
According to a press release released Thursday, the cuts will “primarily come from the company’s commercial aviation business.” Gogo applied for funding for the CARES Act, but it’s unclear whether it has received any assistance.
“Based on our current expectations of the scope and timing of the recovery of the industry and our commercial aviation business, reducing our workforce has become a necessary step,” Gogo CEO Oakleigh Thorne said in a statement. “We don’t take this lightly, but we believe it’s critical to maintain our financial flexibility while maintaining quality of service and relationships with our customers.”
Gogo has not made a profit since it went public in 2013 and was in the midst of a strategic shift before the outbreak. The company has been transforming its business, relying more on satellite Internet to provide in-flight Wi-Fi services. Because its current network still relies heavily on air-to-ground connections, it is prone to outages and bandwidth problems. The company has previously said its plans to launch a 5G network in 2021 will not be affected by job cuts, but it is unclear whether that has changed.
Gogo isn’t the only supplier facing the new crown pandemic. Just last week, Global Eagle, which provides in-flight Wi-Fi to Southwest Airlines, filed for bankruptcy.