In-flight Wi-Fi supplier Gogo is laying off 143 individuals, or around 14 percent of its workforce, as individuals keep on staying away from air travel during the COVID-19 pandemic. The organization recently furloughed 600 workers and cut executive pay in April, and said Thursday that it will “continue certain furloughs and maintain the salary reductions that were previously implemented.”
The cuts will come “predominantly from the Company’s Commercial Aviation business,” as per an official statement given on Thursday. Gogo applied for CARES Act funding, however, it’s muddled if it ever got 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 said 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 made money since it opened to the world in 2013, and was experiencing a key move of sorts before the pandemic hit. The organization has been moving its business to depend more on satellite-based internet for its in-flight Wi-Fi services. since its present network is still vigorously reliant on air-to-ground connections that are vulnerable to interferences and bandwidth issues. The organization recently said it plans to reveal a 5G network in 2021 were unaffected by the furloughs, yet it’s not quickly clear if that has changed.
Gogo isn’t the main supplier confronting pandemic-related struggles. Simply a week ago, Global Eagle — which supplies in-flight Wi-Fi to Southwest — filed for bankruptcy.