UK. Gatwick Airport today announced a restructure of its business that will result in around 600 job losses, or the equivalent of 24% of its current workforce.
The move is part of a wider drive to cut costs in light of the dramatic impact COVID-19 has had on passenger numbers and revenues. The move “will reshape the company so it is best placed to respond quickly to future growth,” said the airport company, which will now enter into a formal consultation process with employees.
The company noted that it took swift action back in March to preserve as many jobs as it could by reducing costs, managing cash outflows, and securing a £300 million bank loan. But in August, usually one of the airport’s busiest months, passenger numbers are over -80% down compared with August 2019.
With passenger volumes so low, Gatwick is currently operating from just its North Terminal. Compared to this time last year, the airport is operating at around 20% of its capacity and therefore still has over 75% of its staff on the UK Government’s Job Retention Scheme, which is due to end in October.
Gatwick Airport Chief Executive Officer Stewart Wingate said: “If anyone is in any doubt about the devastating impact COVID-19 has had on the aviation and travel industry then today’s news we have shared with our staff, regarding the proposed job losses, is a stark reminder. We are in ongoing talks with government to see what sector-specific support can be put in place for the industry at this time, alongside mechanisms which will give our passengers greater certainty on where and when they can safely travel abroad. This support will not only help Gatwick but the wider regional economy which relies on the airport.
“I want to take this opportunity to thank all of our staff, those who have worked tirelessly to keep Gatwick open throughout the pandemic and those who have had to remain on furlough, for their dedicated tenacity, professionalism and team spirit. We will continue to do all we can to preserve as many jobs as possible.
“Gatwick will recover from this pandemic and we will emerge from the restructuring we are proposing a fitter and stronger organisation which is best placed to offer our passengers and our airlines a modern and innovative airport, ready for growth.”
