Virgin Atlantic is set to axe ANOTHER 1,000 jobs just hours after announcing £1.2billion rescue package
- The British airline will reportedly announce the workers cut as early as tomorrow
- It comes just hours after the company had £1.2billion rescue package approved
- It is just months after firm said it would close its Gatwick HQ and axed 3,150 jobs
Virgin Atlantic is set to slash more than 1,000 jobs as it struggles to recover from the coronavirus pandemic.
The British airline, based in Crawley, West Sussex, will reportedly announce the huge cull as early as tomorrow.
It comes just hours after Sir Richard Branson’s firm had a £1.2billion rescue package approved by creditors.
And it is less than four months after Virgin Atlantic said it would close its headquarters at Gatwick and axed 3,150 jobs.
The British airline, based in Crawley, West Sussex, will reportedly announce the huge cull as early as tomorrow
The news means the airline’s workforce would have nearly halved – from 10,000 – since before Covid-19 struck.
Virgin Atlantic has not released figures for the number of employees facing the boot, but a source told Sky News it would be over 1,000.
The company, which was founded in 1984 by Sir Richard, has been battered by the lack of international travel since countries brought in lockdowns earlier this year.
Last week, the airline’s creditors voted to approve a rescue package, which the firm said was a ‘significant milestone in safeguarding its future’.
At a remote High Court hearing yesterday, Mr Justice Snowden sanctioned the restructuring plan, a step of the process for Virgin Atlantic to implement the deal.
The judge said this will allow the airline to make the plan effective by Friday. The £1.2billion rescue deal, announced in July, involves only private funds.
It also includes a cash injection of £200million from founder Sir Richard Branson’s Virgin Group.
David Allison QC, for Virgin Atlantic, told the court four creditor meetings were held last week, with 100 per cent attendance and 100 per cent approval at three of them.
The fourth saw the deal approved by the vast majority of those present and voting. Allison said it was ‘in the best interests of all stakeholders’ to reach an agreement.
A Virgin Atlantic spokesman said in a statement: ‘Achieving this significant milestone puts Virgin Atlantic in a position to rebuild its balance sheet, restore customer confidence and welcome passengers back to the skies, safely, as soon as they are ready to travel.’ A US procedural hearing is expected to follow today.
Virgin Atlantic has not commented on the reported job cuts.