Link to Norwegian's press release here: https://media.uk.norwegian.com/pressrel ... rk-3064682
If you ask me, abandoning long-haul is simply what Norwegian had to do to give itself a fighting chance of survival. I would argue that entering the long-haul market and its subsequent execution is a major factor behind their financial woes. The reliability (in the early days) and engine issues with the 787's along with the 737 MAX groundings wouldn't have helped their cause either.
I doubt airlines such as VS or BA will now be abandoning the hand luggage-only Y fares they've introduced in recent years, some of which was no doubt introduced in response to Norwegian wading into their respective territories in the long-haul market. Likewise with the densification of the LGW-based BA 777's.
All that said, I feel for the staff affected.