Airlines and hospitality companies have been the worst hit as several countries imposed lockdowns after COVID-19 outbreak. As such measures are expected to continue to encourage social distancing and reduce the spread of the virus, the businesses in these sectors continue to suffer.
Latest to suspend work amidst the ongiiy crisis is U.S based company Delta Air. The company has suspended several technology projects due to the pandemic, impacting over 1,300 jobs at its outsourcing vendors in its home country and in India.
Further Delta has cancelled thousands of flights in the United States and to international destinations in Europe, the UK and India, negatively impacting its operations.
"We have made a tough, but necessary decision to reduce contractor positions as Delta manages the impact of the Covid-19 pandemic to its business,” shared a Delta spokesperson with ET.
He also added that several service providers which provide contractor work support to Delta and other companies, have informed approximately 1,300 contractors within the IT organization that their work assignments at Delta are suspended. To support the employees, Delta is giving employees of its vendors an “opportunity to be placed with other clients".
Delta Air's counterpart American Airlines and hospitality group Intercontinental Hotels Group (IHG) have also slashed jobs with technology contractors as they try to stay afloat during the crisis. Technology advisory firm ISG predicts that
the travel and hospitality segment, which includes airlines, hotels, cruise ships and travel agencies, could see an up to 45 percent decline in growth in the coming quarters. Recently Regional airliner Air Deccan announced that it is ceasing its operations until further notice and all employees are being put on sabbatical without pay.
The times are tough for all businesses and employees. While maintaining cash flow will be a critical challenge for companies, they can also not lose their most important pillar of strength: People or Talent. Their well-being is also a top priority for business and HR leaders. Many have hence urged government to lend in support so that pay cuts and lay offs can be avoided as much as possible. Some companies are also looking at more innovative ways to tackle the problem. Here are two related articles you might find interesting to read:
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Image Credits: Delta News