That's in line with the earlier announcement of grounding global flights.
The moves were in addition to the group's decision to temporarily suspend worldwide flying from March 30 to June 14 and close all Virgin Australia operated lounges across the network.
Virgin Australia will cut flying in its domestic network by 90 per cent and has followed Qantas in standing down 8000 workers.
The group will ground 125 aircraft starting from the following week, the company announced on March 25, 2020. Starting from midnight of March 27, it would temporarily cease flights to 19 Australian destinations now operated by Virgin Australia. The company has already announced suspension of global flying from March 30 to June 14.
Qantas CEO Alan Joyce told Sky News last week that Australia's government should "not look after the badly managed companies which have been badly managed for 10 years" and should not nationalise Virgin if it falters.
The further reduction of the domestic capacity means the company has to temporarily suspend services to 19 Australian destinations now operated by it, and it will maintain connectivity to 17 destinations to transport essential services, critical freight and logistics.
Previously, the group said it would suspend all worldwide flying starting from March 30.
The 8,000 staff will be temporarily stood down until at least the end of May, the beleaguered airline announced in a statement to the ASX ahead of the market's open on Wednesday. Until then, Virgin Australia is operating a reduced schedule to "enable Australians to return home and visitors to return to their point of origin". During this period, employees will be able to access accrued leave but for many, leave without pay "will be inevitable".
The suspension of most of Virgin domestic flying will take effect from midnight of March 27 until June 14. The group has a fleet of 133 aircraft across the three airline brands, namely Virgin Australia, Virgin Australia Regional and Tigerair.
Tigerair services will also be suspended immediately, with 125 aircraft now temporarily grounded.
The statement came after escalating state border closures across Australia.