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Coronavirus impact | Delta Air suspends technology projects, over 1,300 vendor jobs to be hit

Airlines across the globe have been hurt after several countries, including India, closed their borders to contain the spread of COVID-19

April 10, 2020 / 12:17 PM IST
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Amid the coronavirus outbreak, Delta Air Lines has suspended several technology projects, impacting over 1,300 staff at its outsourcing partners in the US and India, The Economic Times reported.

Airlines across the globe have been hurt after several countries, including India, closed their borders to contain the spread of COVID-19. Many have either halted operations completely or are operating a small number of flights.

Moneycontrol could not independently verify the report.

Delta has contracts with software majors Tata Consultancy Services (TCS), Cognizant and IBM.

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"We have made a tough, but necessary decision to reduce contractor positions as Delta manages the impact of the COVID-19 pandemic to its business," a spokesperson for the airline told The Economic Times.

“Several service providers, which work to support Delta and other companies, have informed approximately 1,300 contractors within the IT organisation that their work assignments at Delta are suspended,” the spokesperson added.

The spokesperson also said the airline is giving contractors an "opportunity to be placed with other clients".

IBM and Cognizant had not responded to a request for comment by The Economic Times.

"We have strategic relationships with our customers in this sector (airlines and hospitality) and we are partnering with them closely to help them navigate through the crisis. We will be unable to provide any further customer specific information," a TCS spokesperson told the publication.

Delta and Intercontinental Hotels Group (IHG) are working with fewer vendors in some areas, since they have suspended nearly 90 percent of their services, a source told The Economic Times.

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Moneycontrol News
first published: Apr 10, 2020 12:17 pm

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