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Boeing Slashes Over 12,000 US Jobs Amid COVID-19, Thousands More Planned

Boeing mentioned that it had authorized over 5,000 US staff to take voluntary layoffs

Washington:

Boeing Co mentioned Wednesday it was eliminating greater than 12,000 US jobs, together with involuntary layoffs of 6,770 US employees as the biggest American planemaker restructures within the face of the coronavirus pandemic.

Boeing additionally disclosed it plans “several thousand remaining layoffs” within the subsequent few months however didn’t say the place these would happen.

The firm introduced in April it might minimize 10% of its worldwide workforce of 1, 60,000 by the top of 2020. Boeing mentioned Wednesday it had authorized 5,520 US staff to take voluntary layoffs and they’ll depart Boeing within the coming weeks. Boeing additionally disclosed it’s notifying 6,770 employees this week of involuntary layoffs.

Boeing is shifting to chop prices because it faces a drop in airplane demand from the coronavirus pandemic.

Boeing Chief Executive Dave Calhoun informed staff in an e-mail the “pandemic’s devastating impact on the airline industry means a deep cut in the number of commercial jets and services our customers will need over the next few years, which in turn means fewer jobs on our lines and in our offices. … I wish there were some other way.”

Boeing shares rose 0.7% in mid-day buying and selling to $145.76.

In April, Boeing recorded zero orders for the second time this yr and clients canceled one other 108 orders for its grounded 737 MAX aircraft, compounding its worst begin to a yr since 1962.

The pandemic worsened a disaster for the corporate during which the 737 MAX was grounded final yr after the second of two deadly crashes.

Last month, Boeing raised $25 billion in a bond providing that allowed the corporate keep away from taking authorities assist.

The job cuts embody greater than 9,800 staff in Washington State. Boeing mentioned Wednesday the “several thousand remaining layoffs will come in additional tranches over the next few months.”

Boeing mentioned it expects to renew 737 MAX deliveries within the third quarter following regulatory approvals, with manufacturing re-starting at low charges within the second quarter earlier than step by step rising to 31 per thirty days throughout 2021.

“We’re moving forward with our plan to restart 737 MAX production in Renton, Washington,” Calhoun mentioned in his e-mail.

Reuters reported in April 737 MAX approval isn’t anticipated till no less than August.

(Except for the headline, this story has not been edited by NDTV workers and is revealed from a syndicated feed.)

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