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Wheels Up Cuts US$30 Million Staff Costs

by Matt Taylor
Wheels Up Cuts US$30 Million Staff Costs

Wheels Up has announced a restructuring plan in order to reach EBITDA profitability in 2024, revolving around US$30 million of annual reduction in staff costs.

Headcount will be reduced in areas of the business that do not directly impact its operations or customer experience. As such, the cuts will not apply to pilots, maintenance or operations-support personnel.

Wheels Up will spend a total of US$14 million in severance payments, employee benefits and share-based compensation, of which US$7 million was incurred in Q4 2022. The remaining US$7 million will be spent by the end of Q1 2023, per the 8-K filing with the Securities and Exchange Commission.

The charter company posted a US$86.8 million loss over the first nine months of 2022 and hired Todd Smith as its new CFO in June 2022. The company also eliminated the position of president last year, in order to flatten its company structure and speed up decision-making. Wheels Up will post its full-year 2022 results on March 9.

Wheels Up went public in July 2021 via a SPAC merger with Aspirational Consumer Lifestyle Corp., at a valuation of US$2.1 billion. As of the market close on 3 March 2022, Wheels Up was trading at US$1.13 per share, equating to a market capitalization of US$280 million.

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