Boeing said it approved more than 5,000 US employees for voluntary layoffs
Washington:
Boeing Co said Wednesday it is cutting more than 12,000 jobs in the United States, including the involuntary layoffs of 6,770 American workers as the largest American planner restructures in the face of the coronavirus pandemic.
Boeing also said it expected “several thousand layoffs remaining” in the coming months, but did not say where it would take place.
The company announced in April that it would cut 10% of its 1,60,000 global workforce by the end of 2020. Boeing said Wednesday that it had approved 5,520 US employees to take on voluntary layoffs and that they will leave Boeing in the coming weeks. Boeing also revealed that it was informing 6,770 workers this week about involuntary layoffs.
Boeing is working to cut costs in the face of declining demand for aircraft due to the coronavirus pandemic.
Boeing CEO Dave Calhoun told employees in an email that “the devastating impact of the pandemic on the airline industry means a dramatic reduction in the number of commercial aircraft and services including our customers will need in the next few years, which in turn means fewer jobs on our lines and in our offices … I wish there was another way. “
Boeing shares rose 0.7% mid-day to $ 145.76.
In April, Boeing recorded no orders for the second time this year and customers canceled 108 additional orders for its 737 MAX aircraft on the ground, further compounding its worst start to the year since 1962.
The pandemic has aggravated a crisis for the company in which the 737 MAX was immobilized last year after the second of two fatal accidents.
Last month, Boeing raised $ 25 billion in a bond issue that allowed the company to avoid taking government assistance.
The layoffs include more than 9,800 employees in Washington State. Boeing said Wednesday that “several thousand remaining layoffs will come in additional installments over the next few months”.
Boeing said it plans to resume 737 MAX deliveries in the third quarter after regulatory approvals, with resumption of low-rate production in the second quarter before gradually increasing to 31 per month in 2021.
“We are moving forward with our plan to restart production of the 737 MAX in Renton, Washington,” said Calhoun in his email.
Reuters announced in April that approval for the 737 MAX is not expected until at least August.
(With the exception of the title, this story was not edited by GalacticGaming staff and is published from a syndicated feed.)
