Gogo to trim headcount as recovery optimism weakens

Gogo is eliminating 143 fulltime positions, predominantly from the Company’s Commercial Aviation business. The move aims to “align the scale of its organization with current demand for aviation connectivity services” as the current industry downturn continues to impact its revenue, especially in the commercial aviation segment.

CEO Oakleigh Thorne notes that this move represents one of the company’s 16-lever strategy for reducing costs, first developed at the beginning of the crisis.

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. We do not take this action lightly, but we believe it is critical in our efforts to preserve our financial flexibility, while maintaining the quality of our service and relationships with our customers.

– Oakleigh Thorne, Gogo’s President and CEO

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The layoffs take effect 14 August 2020 and represent approximately 14% of the Company’s overall workforce. In addition to the reduction in force, Gogo will continue previously announced furloughs and maintain the salary reductions that were previously implemented. The furloughs represent some 600 employees impacted.

Read More: Gogo furloughs 60% of workforce, applies for CARES Act support

The company previously consolidated office space at its Chicago headquarters even before this move, suggesting that the reductions are not expected to be a short-term situation.

This move also makes clear that the company’s “Hail Mary” funding effort through CARES Act loans or grants did not materialize as hoped. That was a long-shot option, but one that would’ve given the company a massive boost in these trying times.

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