Gogo Announces Further Personnel Actions in Response to COVID-19 Impact on Commercial Air Travel
CHICAGO, July 30, 2020 /PRNewswire/ -- Gogo Inc. (NASDAQ: GOGO) provided an update on additional measures the Company is taking in response to the ongoing COVID-19 pandemic and its impact to commercial aviation.
As part of its continued cost reduction initiatives to align the scale of its organization with current demand for aviation connectivity services, Gogo is eliminating 143 fulltime positions, predominantly from the Company's Commercial Aviation business.
"As the pandemic continues to impact commercial airline travel, we are taking additional actions as part of our comprehensive 16-lever strategy to reduce costs. 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," said Oakleigh Thorne, Gogo's President and CEO.
The reduction in force will take effect on August 14, 2020, and represents approximately 14% of the Company's overall workforce. In addition to the reduction in force, Gogo will continue certain furloughs and maintain the salary reductions that were previously implemented.
In keeping with the previously announced 16-lever plan to reduce costs, Gogo will continue to pursue non-personnel cost-savings levers, including renegotiating terms with suppliers, delaying aircraft equipment installations, deferring purchases of capital equipment, reducing marketing and travel expenses, and eliminating non-essential spend.
Gogo's products and services are installed on thousands of aircraft operated by the leading global commercial airlines and thousands of private aircraft, including those of the largest fractional ownership operators. Gogo is headquartered in Chicago, with additional facilities in Broomfield, Colo., and locations across the globe. Connect with us at gogoair.com.
Cautionary Note Regarding Forward-Looking Statements
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