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Delta Air cuts 1300 vendor jobs and tech projects

Delta Airlines, a US-based carrier has cut over 1300 jobs overall in its home country and India. Also, it has cut several technology projects which are outsourced to multiple other companies.

It has also canceled thousands of fights to multiple countries like India, Europe, etc. Along with Delta Airlines, several other carriers have also canceled their flights in order to stop the spread of the virus contamination.

Delta Airlines outsources the projects to Tata Consultancy Services, Cognizant, and IBM in India. A Delta Airlines spokesperson has told that they have taken strict but necessary decisions in order to reduce the impact on the airline business. Several service providers have informed around 1300 contractors that the existing projects are suspended. Also, Delta is said to be helping the employees of its vendors by placing them in the other client projects.

A TCS spokesperson has said they have a strategic relationship with its customers and all are working towards a goal to eliminate this crisis. It also said it cannot provide any exclusive information regarding any of its customers. IBM and Cognizant are yet to respond to this situation.

Hospitality and Airlines are the first sectors that are affected the most due to this lockdown situation. Several American Airlines and InterContinental Hotel Group (IHG) have also cut several jobs with its contractors to survive this crisis. IHG and American Airlines didn’t respond to this situation publicly. 90% of their services are said to be suspended due to this crisis.

Sanchit Vir Gogia, chief executive of Greyhound Research has said that the impact on the Airlines and Travel sector will be high in the upcoming two quarters. There could a 45% decrease in the growth of these sectors which include airlines, hotel, travel and hospitality segments.

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