Major Airline Layoffs Making Employees Worry About Employment
There has been job loss across so many industries this year, especially since March with the COVID-19 pandemic and it looks like the airline industry is going to be moving forward with furloughs and will be leaving tens of thousands of people across the country with a job. This news is coming from The Denver Channel, which is reporting that over the next few days approximately 40,000 airline workers are going to be laid off with the CARES Act Payroll Support program set to expire.
Earlier this year the airline industry got a $25 billion bailout to help pay workers, but in exchange for that money, no workers were to be laid off. In July, United Airlines alone sent a warning to 36,000 employees. Earlier this week they announced that 13,000 employees would be furloughed.
We are talking about thousands of families this week that will be scrambling to figure out how they will be paying their bills, and keeping food on the table for their families. This is something that no one wanted or could have expected as we began the year but it's the unfortunate reality of what we are facing.
The pandemic has been horrible to the travel industry as air travel has dropped significantly since March. In June airport traffic in Denver was down approximately 75% compared to last year. In August it was down just 56% but no company was expecting to lose half of their revenue when budgeting for the year, so they are having to make changes to their business model to stay in business.
Fingers crossed these furloughs are short and temporary and these hard-working employees can return to their jobs soon.