Virgin Atlantic CEO warns tech layoffs will impact aviation industry

One of the latest hurdles the aviation industry could potentially face: layoffs of technicians.

Virgin Atlantic CEO Shai Weiss told FOX Business that multiple layoffs in the sector – both in the US and the UK – are “affecting” the travel industry.

“The changes in the world of technology that we are certainly undergoing… is the big journey across the Atlantic and beyond,” Weiss said.

For example, the chief executive noted that the nearly 40-year-old carrier, owned by the Virgin Group and Delta Air Lines of billionaire Richard Branson, flies to San Francisco, Seattle and Austin, Texas, which “are major metropolitan areas for technology companies. ”

“When they decide to cut staff, it will affect the travel industry more broadly,” continued Weiss, who took over in 2019.

However, the CEO expects corporate travelers to return in full by the end of the year has not wavered.

Tech layoffs have increased in recent months as companies try to tighten their belts after overhiring during the COVID-19 pandemic. Companies have benefited from a surge in demand for their products and services as people have been forced to work remotely.

Tens of thousands of people have already lost their jobs to big companies, including Amazon, Google parent Alphabet, Twitter, Facebook parent Meta, Microsoft, Dell, Zoom and Salesforce.

More than 101,000 global tech workers have already lost their jobs nearly six weeks into the new year, according to Layoffs.fyi, a website that tracks industry job cuts.

Despite cutbacks, many tech companies are bigger than they were three years ago. In August, when Snap cut 20% of its staff, the social network said that even after the layoffs, its staff will be more than a year earlier. In recent years, its workforce has grown to over 5,600 people.

Technology is also only part of the corporate audience.

Weiss expects corporate travel to return to pre-pandemic levels by the end of 2023. Corporate travel has already recovered 80% from 2019 levels across the long-haul carrier’s network.

At the same time, Virgin Atlantic is seeing a significant surge in travel travel, with record bookings just in the first month of the new year, showing how travelers continue to seek out experiences, Weiss said.

The Associated Press contributed to this report.