The large layoffs in the airline industry because

The coronavirus has lead to a huge economic slowdown which has increased unemployment. The tourism and airline industries have taken a huge hit resulting in them having to layoff thousands of employees to downsize their workforce and reduce costs. With passenger demand falling by 47%, many airline companies are finding it extremely hard to operate and have suffered a cumulative loss of 11.2 billion dollars in 2020.

Lockdown and lack of demand 

The pandemic induced lockdown has forced people in most parts of the world to stay indoors. This coupled with the risk of the virus spreading during travel has lead to most flights getting canceled. This has lead to airlines downsizing staff. Furthermore, restrictions for tourists in different countries has made the process more complicated for travelers and airlines.

A large Number Of Staff

When it comes to the airline industry, it is very well staffed to ensure that there is maximum customer support and minimum delays. However, with the decrease in demand and increased digitization as a consequence of social distancing, thousands of staff have been declared redundant and are being laid off. However, in recent weeks, the industry is beginning to pick up as the countries have reopened their borders and people have started traveling.

This is how the Covid-19 lockdown lead to a big slowdown in the airline industry causing thousands of employees to be laid off.