According to Virgin Atlantic's CEO Shai Weiss, the multiple layoffs in the field, both in the US and the UK, "have an influence" on the tourism sector.
Here's what he stated:
"The developments in the tech world, to which we are, of course, subject, are big flyers across the Atlantic and beyond."
The CEO also highlighted the almost 40-year-old airline's nearly 40 destinations, such as San Francisco, Seattle, and Austin, Texas, which are "high conurbation locations for technological businesses." The company is owned by billionaire Richard Branson's Virgin Group and Delta Air Lines.
Weiss, who took over in 2019, added:
"When they decide to downsize their employment, it will influence the travel business more broadly."
However, the CEO's prediction that business travelers will return in full force by year's end hasn't changed.
Tech layoffs have increased recently as businesses try to cut costs after hiring too much during the Covid-19 outbreak. When people were compelled to work remotely, the demand for their goods and services grew, which was profitable for the enterprises.
Heavy giants including Amazon, Google parent Alphabet Inc., Twitter, Facebook parent Meta, Microsoft, Dell, Zoom, and Salesforce have already cut hundreds of thousands of positions.
Based on the Layoffs.fyi data (a website that analyzes job cutbacks in the field), more than 101,000 worldwide tech employees have already lost their jobs nearly six weeks into the new year.
Many tech companies are now bigger than they were three years ago, despite the downsizing. Even with the layoffs, the social media business stated, its headcount will be larger than it was a year earlier when Snap eliminated 20% of its workforce in August. In the previous few years, its staff has increased to over 5,600 people.
A small percentage of the business audience is also in the tech sector.
According to Weiss, by the end of 2023, corporate travel is anticipated to reach pre-pandemic levels. 80% of 2019's levels have already been surpassed for corporate travel over the entire system of the long-haul carrier.
While it's going on, Weiss noted that Virgin Atlantic is having a significant uptick in leisure travel, with record bookings just in the first month of the new year. This shows how travelers are still looking for new experiences.
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Source: Israel Andrade/Unsplash
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