As a major airline catering company, LSG Sky Chefs, has made a bold decision that will have repercussions in the aviation catering world. They have shockingly announced the layoffs of 259 employees at the Phoenix Sky Harbor International Airport. This comes after the company, which has one of the main catering company at the airport as a partner, had supposed to end their contract in the coming fall. The layoffs are set to occur on November 5, 2025. The statement highlights that the LSG Sky Chefs forecast of catering airline operations might create broader trends in the aviation industry along with the challenges workers in the sector may face.
LSG Sky Chefs, one of the world’s largest airline catering companies, has long been a key service provider at Phoenix Sky Harbor International Airport, which serves millions of passengers each year. The company’s operations at the airport will be significantly reduced following the termination of its contract with a major airline. While the full reasons for the contract’s end have not been detailed, the restructuring of airline operations and catering services is not uncommon, especially as the airline industry continues to recover and evolve following the pandemic.
On September 4, 2025, LSG Sky Chefs filed a Worker Adjustment and Retraining Notification (WARN) with Arizona’s Department of Economic Security. The filing, which is a requirement for companies planning mass layoffs, stated that 259 workers would be permanently laid off due to the end of the contract. This news has generated concern among employees, many of whom have worked at the airport for years, providing essential catering services for flights that pass through one of the busiest airports in the United States.
For workers in the catering and airline service sectors, this announcement means a sudden and significant change. The layoffs will not only affect the employees’ immediate financial stability but also their career prospects in a challenging job market. Given that Phoenix Sky Harbor is a major hub, the closure of this operational segment could also have ripple effects on related industries such as airport logistics, maintenance, and food delivery services.
While the immediate future for these workers may seem uncertain, support is available. Arizona’s Rapid Response program, administered by ARIZONA@WORK through the Department of Economic Security, offers assistance for those affected by layoffs. This support includes job search assistance, resume writing services, and access to job training programs. These services are designed to help laid-off workers transition smoothly into new roles, whether within the aviation sector or in other fields.
For tourists and travellers flying through Phoenix Sky Harbor International Airport, the impact of these layoffs may be minimal at first glance. However, there are potential implications for the quality of services at the airport. With fewer catering staff on-site, there may be slight disruptions in the availability of on-board meals and services, particularly for flights handled by the airline that ends its contract with LSG Sky Chefs. Passengers travelling through the airport in the coming months should be prepared for potential changes in service availability, especially for long-haul or international flights that traditionally offer in-flight meals.
The airport itself remains a major international hub, and the departure of LSG Sky Chefs from some of its operations will likely prompt a reorganization of food services at the airport. While Phoenix Sky Harbor is known for its wide array of dining options, travellers may notice changes in the types and quality of services available on certain flights, particularly as new contracts are negotiated between the airport, airlines, and catering companies.
The Rapid Response services available to affected employees provide a lifeline during this uncertain time. ARIZONA@WORK, part of Arizona’s Department of Economic Security, offers no-cost services to help displaced workers find new employment opportunities. These services include assistance with job placement, resume building, career coaching, and retraining programs that can help workers transition into other industries or roles within the aviation sector.
For workers at LSG Sky Chefs, the possibility of retraining and moving into other roles at the airport or in related industries is a crucial element of support. Additionally, job fairs and employment workshops are often organised as part of the Rapid Response program, which can help connect workers with prospective employers in the Phoenix area. This is an opportunity for displaced employees to reskill and explore different avenues for employment within the local job market.
The situation at Phoenix Sky Harbor serves as a reminder of the dynamic nature of the aviation and catering industries. Airlines often reassess their suppliers and partners to streamline operations, reduce costs, and meet evolving customer expectations. In this case, the reduction in catering staff highlights the changing landscape of airport services, as both airlines and catering companies adjust to meet post-pandemic travel trends and the increasing demand for efficiency.
However, this isn’t an isolated incident. In recent years, there has been a trend of automation and technological innovations within airport operations, including catering services. The shift towards automated food preparation and the introduction of more self-service food options at airports could further reduce the reliance on traditional catering models, leading to more job cuts in the sector.
For travellers, these shifts may lead to a more diverse selection of food options available at airports, but they also come with the risk of fewer personnel available to handle customer concerns or provide on-demand services. It’s essential for passengers to remain flexible and patient as airports continue to evolve and adapt to new operational models.
As LSG Sky Chefs exits its role in providing catering services at Phoenix Sky Harbor, the airport will likely seek new partners to fill the gap. The process of selecting new catering providers could involve shifts in meal offerings, service styles, and operational efficiency. It remains to be seen how quickly the airport will recover from these changes and whether new service providers will enhance or reduce the current level of service.
Meanwhile, the Phoenix Sky Harbor team is committed to ensuring that the airport remains a smooth and enjoyable experience for all visitors. The continued growth of the airport and its reputation as a major international hub suggest that any disruptions from these layoffs will be temporary.
News about the withdrawal of 259 jobs at LSG Sky Chefs at Phoenix Sky Harbor Airport is an important moment to employees in the airline business. Although it creates barriers for those workers, the accessibility to support from programs like Rapid Response offers retraining and employment opportunities. Airport services might be a little more inconvenient for passengers, but Phoenix Sky Harbor is still among the busiest and most important in the United States. As the catering industry continues to evolve, both workers and travellers have to adapt to the changes, which will ultimately shape the future of travel and airport services..
