Boeing offers second volunteer layoff package with pay and benefits to employees
Boeing Co confirmed on Monday, 17 August that it would offer employees a voluntary layoff package with pay and benefits for the second time this year, as the company battles a coronavirus-induced slowdown in global air travel.
Earlier in May this year, Boeing had announced to layoff close to 7,000 employees as coronavirus pandemic hurts demand that includes voluntary and involuntary measures to reduce its headcount of roughly 160,000 people by 10%.
It will be offered to employees in the commercial aeroplanes and services businesses as well as corporate functions, Chief Executive Officer Dave Calhoun wrote in a note to employees, a copy of which was seen by Reuters.
“Unfortunately, layoffs are a hard but necessary step to align to our new reality, preserve liquidity and position ourselves for the eventual return to growth,” Calhoun, President, and CEO of the Boeing Company said in the note.
“We anticipate seeing a significantly smaller marketplace over the next three years.” The health crisis, which has hammered planemakers, airlines, and suppliers, has added to the woes of Boeing that has been grappling with a production freeze and year-long grounding of the 737 MAX following two fatal crashes.
The company doesn’t have a set target at this time and was encouraging all eligible employees interested in the voluntary layoff package to apply, Boeing said in a statement.
The move to extend the overall workforce reductions beyond the initial 10 per cent target is in response to employee feedback, Calhoun said.
The planemaker had said in April it would cut its 160,000-person workforce by about 10 per cent, many of which were to be completed by the end of this year at its commercial aircraft division.
More details will be made available to the employees beginning August 24, according to the CEO’s note.