WestJet to Lay Off 3,333 Workers as Demand For Air Travel Sinks

The Calgary based aviation company, WestJet said on Wednesday’s that it will permanently lay off 3,333 workers as demand for air travel sinks due to pandemic. The airline had 14,000 employees before pandemic. The subsequent border closures and travel restrictions grounded two-thirds of its fleet, WestJet

“Right now, just 4,500 employees are on payroll and WestJet is exploring options to bring back 5,500 employees temporarily laid off,” the announcement said.

“WestJet has remained self-sufficient throughout this extended crisis, cutting our costs by more than 60 per cent,” CEO Ed Sims said in a YouTube video about the decision.

“And yet, despite these efforts, the damage we’ve incurred from a weakened demand environment is being compounded by multiple factors … the reality in which we find ourselves requires difficult and often painful decisions to ensure our continued viability in the future,” Sims said, adding that the decision was a last resort.

The airline will consolidate its call centre in Alberta, and reduce out its operations in all but four of its 38 domestic airports, leaving just Calgary, Edmonton, Toronto and Vancouver. The measures also include restructuring of management and office staff and cutting salaries of executive, vice-president and director.

Last week, less than 7,500 passengers arrived at Canadian airports from the United States, down more than 98 per cent from a year earlier, according to data with the Canada Border Services Agency.

Travelers arriving in Canada from overseas need to self-quarantine for two weeks to prevent spread of pandemic, and also a global travel advisory from the Government remains in effect, warning Canadians to avoid non-essential trips out of the country.

The ban on non-essential travel between Canada and the U.S. has been extended until at least July 21.