Thursday, July 16, 2020
banner
Home /  Business  /  Boeing details plans for mass job cuts as COVID-19 hits global air travel

Boeing details plans for mass job cuts as COVID-19 hits global air travel

Boeing details plans for mass job cuts as COVID-19 hits global air travel

Agencies
Washington
Airplane maker Boeing on Wednesday announced plans to shed more than 13,000 employees, including the first round of compulsory cuts as part of previously announced plans triggered by the coronavirus-driven collapse in global air travel.
Boeing will fire 6,770 staff in the United States this week after thousands of workers already agreed to terms on voluntary layoffs in recent weeks.
Boeing has faced a two-fold crisis, dealing with the coronavirus pandemic, which has sharply reduced air travel, on top of the longer-term fallout from its embattled 737 MAX jet, which was grounded after two crashes killed 346 people in Ethiopia and Indonesia.
Boeing also disclosed its plans of “several thousand remaining layoffs” in the next few months but did not say where those would take place.
“We have come to the unfortunate moment of having to start involuntary layoffs,” company chief executive Dave Calhoun said in an email to staff.
The company announced in April it would cut 10 percent of its worldwide workforce of 160,000 by the end of 2020. Boeing stock was down about 0.3 percent in trading on Wednesday.
Boeing is moving to cut costs as it faces a drop in airplane demand from the coronavirus pandemic.
In April, Boeing recorded zero orders for the second time this year, and customers canceled another 108 orders for its grounded 737 MAX plane, compounding its worst start to a year since 1962.
The pandemic worsened a crisis for the company in which the 737 MAX was grounded last year after the second of two fatal crashes.
Last month, Boeing raised $25 billion in a bond offering that allowed the company to avoid taking government aid.
The job cuts include more than 9,800 employees in Washington State. Boeing said Wednesday the “several thousand remaining layoffs will come in additional tranches over the next few months.”
Boeing said it expects to resume 737 MAX deliveries in the third quarter following regulatory approvals, with production re-starting at low rates in the
second quarter before gradually increasing to 31 per month during 2021.
“We’re moving forward with our plan to restart 737 MAX production in Renton, Washington,” Calhoun said in his email.

Pages