Syracuse, N.Y. — Avis is extending the furloughs of 50 workers and has made permanent the layoffs of 17 others as the coronavirus pandemic continues to take a toll on the travel industry.
Avis Budget Car Rental LLC filed a notice under New York’s Worker Adjustment and Retraining Notification (WARN) Act on Thursday saying the actions were being taken because of “unforeseeable business circumstances prompted by Covid-19.”
Covid-19 is the highly contagious respiratory disease caused by the novel coronavirus. It has killed 203,000 people in the U.S.
The furloughs at Avis occurred from April through June at or near airports across the state, including Syracuse Hancock International Airport, as the pandemic slowed down the travel industry, especially air travel. The layoffs were made permanent on Sept. 1.
The company’s WARN notice does not provide a breakdown of how many workers were affected at each location across the state.
The pandemic has dealt a serious blow to Avis and other car rental companies, which get two-thirds of their revenues from airport locations.
Avis reported a loss of $481 million in the second quarter, with revenues falling 67% compared with the period last year. It lost $639 million in the first six months of 2020.
The company said it has furloughed more than 60% of its employees around the world, reduced the pay of its senior leadership, frozen merit increases and eliminated its 401(k) match for highly compensated employees.
Hertz filed for protection from creditors under Chapter 11 of U.S. Bankruptcy Code in May, citing the impact of the pandemic on its business.
Rick Moriarty covers business news and consumer issues. Got a tip, comment or story idea? Contact him anytime: Email 5/8 Twitter 5/8 Facebook 5/8 315-470-3148
©2020 Syracuse Media Group, N.Y.
Visit Syracuse Media Group, N.Y. at www.syracuse.com
Distributed by Tribune Content Agency, LLC.