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Gogo lays-off 14% of its workers

As the airline industry struggles to continue, Gogo lays off 14 percent of its employees.

Gogo, In-flight Wi-Fi provider is laying off 143 works or almost 14% of its employees, as individuals keep on maintaining a strategic distance from air travel during the COVID-19 pandemic. Previously, the company cut executive pay in April and furloughed 600 employees, said Thursday that it will with specific leaves of absence, and keep up the pay decreases that were recently implemented.

As indicated by a press release issued Thursday, from the Company’s Commercial Aviation business the cuts will come dominatingly. Though it’s unclear if at any point got any help, Gogo applied for CARES Act funding.

Gogo’s CEO Oakleigh Thorne said in a statement, “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,” he further added that they don’t make this move delicately but they trust it is basic in their relationships and service with their customers.

Since Gogo went public in 2013, it has not made a profit and was experiencing a vital move of sorts before the pandemic hit. The company has been moving its business to depend more on satellite-based web service for its in-flight Wi-Fi services. Because its present system is still intensely subject to air-to-ground associations are powerless to bandwidth and interruptions issues.

Previously the company said its plans in 2021 to roll out a 5G network were unaffected by the leaves of absence, however, it’s not quickly clear if that has changed.

Gogo isn’t the only supplier confronting pandemic-related issues. Simply a week ago, Global Eagle, which supplies in-flight Wi-Fi to Southwest, petitioned for financial protection.

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