Virgin Atlantic plans to cut 1,150 more job
Virgin Atlantic announced 1,150 more job cuts on Friday due to the coronavirus crisis, saying its 1.2 billion pound ($1.6 billion) rescue deal alone was not enough to secure its future.
The airline, which had already announced around 3,500 job losses, completed the rescue deal with major shareholders and creditors on Friday after various court approvals.
IMPACT OF THE PANDEMIC ON AVIATION CONTINUES
Chief Executive Shai Weiss said that while the deal was a major step forward towards survival, more action was needed. “After the sacrifices so many of our people have made, further reducing the number of people we employ is heart-breaking but essential for survival,” he said.
With the latest cuts, Virgin Atlantic, which is 51% owned by Richard Branson’s Virgin Group and 49% by the U.S.’s Delta Air Lines Inc, will have shed almost 50% of its pre-pandemic workforce of around 10,000.
The airline said it was entering a company-wide consultation on the latest reductions, which fall across all functions, and would discuss the cuts with trade unions Unite and the British Airline Pilots Association.
Unite called on the British government to support the aviation sector. Virgin Atlantic reached a private-only recapitalisation deal after the government said it had to exhaust such avenues before state backing was considered.