WestJet recently announced a significant layoff of around 1,000 employees due to financial struggles exacerbated by several factors. The airline has been facing decreased demand, particularly impacted by government restrictions, COVID-19 testing requirements, and travel advisories, which led to a sharp drop in new bookings and a surge in cancellations. This move includes a mix of furloughs, temporary layoffs, unpaid leaves, and reduced hours across various departments. WestJet also introduced a hiring freeze as part of its efforts to manage costs and sustain operations amid ongoing uncertainties in the travel industry.
WestJet’s decision to cut approximately 1,000 jobs highlights the ongoing financial difficulties faced by the airline industry, particularly amid the challenges posed by the COVID-19 pandemic. These layoffs are part of a broader strategy to cope with the significant decline in air travel demand, especially after new travel restrictions were introduced by the Canadian government.
The Calgary-based airline is reducing its capacity by around 30%, which includes canceling numerous domestic flights and suspending hiring. WestJet attributes these challenges to the federal government’s requirement for all inbound travelers to present negative tests before boarding flights to Canada, as well as the mandatory 14-day quarantine, which has discouraged travel bookings.
The impact of these restrictions has been severe, with the airline reducing its daily flights to levels not seen since 2001, operating just 150 daily departures. Union leaders, representing impacted staff, have expressed frustration with the government’s policies, arguing that the measures disproportionately harm the industry.