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Tech layoffs are one of the newest challenges that the airline sector may encounter.
The numerous layoffs in the sector, both in the US and the UK, “have an influence,” according to Virgin Atlantic’s CEO Shai Weiss, on the tourism sector.
Weiss stated that “the changes in the tech world, to which we are, of course, subject, are enormous travelers over the Atlantic and beyond.”
For instance, the chief executive noted how the nearly 40-year-old carrier – owned by billionaire Richard Branson’s Virgin Group and Delta Air Lines – flies to San Francisco, Seattle and Austin, Texas, which “are high conurbation areas for technology companies.”
“When they make decisions to reduce their workforce it will impact the travel industry more broadly,” Weiss, who took over in 2019, continued.
Still, the chief executive’s expectation that corporate travelers will return in full scope by year’s end hasn’t wavered.
Tech layoffs have increased recently as businesses try to cut costs after employing too much during the COVID-19 outbreak. When people were compelled to work remotely, the demand for their goods and services increased, which was profitable for the businesses.
Heavy giants including Amazon, Google parent Alphabet, Twitter, Facebook parent Meta, Microsoft, Dell, Zoom, and Salesforce have already cut tens of thousands of jobs.
Nearly six weeks into the new year, more than 101,000 worldwide IT workers have already lost their jobs, according to Layoffs.fyi, a website that records job losses in the sector.
Many tech businesses have grown since three years ago, despite the cuts. Even with the layoffs, Snap’s headcount will be greater than it was a year earlier, the social media firm said in August when it reduced 20% of its workforce. In recent years, it had added more than 5,600 workers to its staff.
Another segment of the corporate audience is technology.
By the end of 2023, business travel is anticipated to reach pre-pandemic levels, according to Weiss. 80% of 2019’s levels have already been reached for business travel over the entire network of the long-haul airline.
While this is going on, Weiss said that Virgin Atlantic is experiencing a significant uptick in leisure travel, with record reservations only in the first month of the new year. This shows how passengers are still looking for new experiences.
What do you think of that situation with Virgin Atlantic layoffs? Share your opinion in the comment section below.
