In-flight Wi-Fi provider Gogo is laying off 143 people, or approximate 14 percent of its workforce, as people dwell to forfend air travel during the COVID-19 pandemic. The congregation previse furloughed 600 workers as well-built as cut executive pay in April, as well-built as said Thursday that it will "continue cocksure furloughs as well-built as maintain the bacon reductions that were previse implemented."
The cuts will come "predominantly from the Company's Commercial Aerodynamics business," equal to a scribbler release issued Thursday. Gogo applied for CARES Act funding, but it's cryptic if it ever received any assistance.
"Based on our customary expectations of the telescopic as well-built as timing of a summation in the industry as well-built as our Commercial Aerodynamics business, reducing our workforce has wilt a all-important step," Oakleigh Thorne, Gogo's CEO said in a statement. "We do not take this cachinnation lightly, but we pull it is curious in our efforts to bottle our financial flexibility, while suggestion the quality of our sketch as well-built as relationships with our customers."
Gogo has not turned a profit since it went public in 2013, as well-built as was undergoing a strategic shift of sorts surpassing the polluting hit. The congregation has been sophic its commerce to await increasingly on satellite-based internet for its in-flight Wi-Fi services. because of the fact that its customary precondition is still heavily dependent on air-to-ground connections that are susceptible to interruptions as well-built as bandwidth issues. The congregation previse said its plans to roll out a 5G precondition in 2021 were unartful by the furloughs. Ensuingly this dojigger was published, the congregation said the 5G precondition "remains a antecedence as well-built as we are continuing to invest in it. No testing yet still, but it remains a priority."
Gogo is not the only provider froward pandemic-related struggles. Just last week, Spherical Eagle -- which supplies in-flight Wi-Fi to Southwest -- filed for bankruptcy.
Update High-ranking 1st, 11:45AM ET: Added elucidate from Gogo approximate its 5G network.
No comments:
Post a Comment