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Virgin Atlantic is to axe 3,150 jobs – around a third of its workforce – as it struggles to survive the coronavirus pandemic’s devastating affect of the airline industry.
Chief executive Shai Weiss blamed the move on “unprecedented market conditions” as a result of the virus which had “severely reduced revenues”.
In a statement, he added: “We have weathered many storms since our first flight 36 years ago, but none has been as devastating as Covid-19 and the associated loss of life and livelihood for so many.”
Virgin Atlantic said it would also be moving its flying programme from London Gatwick to London Heathrow, with the intention of retaining its slot portfolio at Gatwick so it can return in line with customer demand, PA Media reports.
Airlines around the world have grounded the vast majority of their aircraft due to the collapse in demand and travel restrictions caused by the virus.
Earlier this month, Virgin Atlantic called on the government to offer the UK’s airline industry emergency credit facilities worth up to £7.5bn.
The company, founded by Sir Richard, has previously told staff to take eight weeks of unpaid leave.
Asked on Tuesday about bailout options for the aviation industry, a Downing Street spokesperson said the government was “willing to consider the situation of individual firms once all other government schemes and commercial options have been explored, including raising capital from existing investors”.
The news comes a week after British Airways announced it would make 12,000 workers redundant as it is expected to take “several years” for the airline industry to recover from the coronavirus pandemic.
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