Citing 'Devastating' Pandemic Impact, Boeing To Lay Off 7,000 More Workers
'This moment is among the most difficult in our more than 100-year history,' CEO Dave Calhoun said. Most of the layoffs will be in Washington state, where Boeing designs and builds many aircraft.
Elaine Thompson/APtoggle captionElaine Thompson/APBoeing will be laying off thousands of additional employees as the airplane manufacturer continues to lose money due to the coronavirus pandemic.Elaine Thompson/APBoeing will be laying off thousands of additional employees as the airplane manufacturer continues to lose money due to the coronavirus pandemic and the prolonged grounding of its 737 Max jet.
A global collapse in air travel has all but eliminated airlines' need to buy new commercial jets. As a result, Boeing has slowed production of new aircraft and announced this summer that it would be eliminating 19,000 jobs.But now the aerospace giant says it needs to reduce its workforce even more.
In an email message to employees Wednesday, CEO David Calhoun said the company need to"align to market realities," and eliminate about 30,000 jobs in all.Boeing started the year with about 160,000 employees around the world, but in the memo to employees, Calhoun said"we anticipate a workforce of about 130,000 employees by the end of 2021."
The company has been offering early retirement packages and other incentives for workers to leave voluntarily, and it hopes to achieve some of the job cuts through natural attrition, but the the company will also layoff an additional 7,000 employees."There's no doubt that this moment is among the most difficult in our more than 100-year history," Calhoun said Wednesday in a conference call announcing a net third quarter loss of close to $450 million."The COVID-19 impacts on our commercial customers continue to be devastating, and airlines have cut back operations dramatically."
In March and April, as many countries locked down and imposed travel bans to slow the spread of the deadly coronavirus, air travel globally nearly came to a complete halt. Theand Calhoun says even as some international borders re-opened and air travel resumed,"the overall recovery has been at a slower pace than we originally anticipated."
"Although this remains an unprecedented and uncertain time," Calhoun added,"we are confident air travel will return."But in the short term, the pandemic is expected to sharply reduce the need for new planes, and thus Boeing's sales. The airplane manufacturer has lowered its forecast of demand for new commercial jets over the next decade by 11%, and some industry analysts say that prediction is still overly optimistic.
"The reality is that our industry as a whole will simply build less in the coming years," said Boeing Chief Financial Officer Greg Smith on the conference call. "In the current environment, we must take these actions to adapt to lower demand," he said, referring to the slowdown of production and job cuts.
Though Boeing is headquartered in Chicago, most of the layoffs will be in the Puget Sound region of Washington state, where Boeing designs and builds many of its aircraft. Read more: NPR Health News »
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Oh boo hoo. Go cry to congress for another multi million dollar bailout Hope some of that went victims’s families whose loved ones died in air crashes due to the over competitive rush to release systems ahead of safety concerns Meanwhile Boeing was injected with $25 billion of taxpayer money back in May when the treasury bought 25 billion worth of their junk bonds and stocks. Where did that money girl
If only they saved more money in case of an emergency. Watch out for those who intend to stop the disease by strangling the patient. Thank god the economy is going strong so all those laid off workers can cash in their 401k's that have lost most of their value. 'David Calhoun, the private equity executive who is taking over Boeing later this month as its new CEO, could earn $28 million for his first year on the job.'
So what kind of pay cut are the top execs taking? More impacts from the failing of DerangedDonald realDonaldTrump to protect our country from the TrumpVirusCatastrophe Boeing spent $34.6 billion on stock buy backs. Airplane production has been a boom/bust industry so this is not exactly new. What is new is extorting govt relief for their own folly. Mgmt and the board approved these actions so the penalty is they don't get to keep the company
Just a little peek into what life would be like if the Green New Deal became a thing. This whole industry is American capitalism in an aluminum nutshell I only feel bad for the hard working employees that will never get a bailout or severance. So much winning, righ, realDonaldTrump? So all that pandemic money they were given was for nothing eh
Wonder how much bonus money went to the head peeps there........... Trump’s America Lockdowns=economic disaster. Folks in the replies sounds surprised that companies aren’t magically surviving without revenue, or that a bailout years ago is still sitting there waiting to be gifted to employees. Down with the war machine
Governor Inslee is doing more to push them completely out of the state. GovInslee Not cool, but let's bail out the people before we think about bailing out the airline industry. StimulusNow UBI In the USA, money is not paying for the people who produce, but for the people who grabbed the power. Have you guys considered perhaps reducing the multi hundred million dollars worth of bonuses the top that is already incredibly rich get?
Obama is behind all of this buck foeing They should have been leading the charge to squelch worldwide shutdown. Where the fuck were they? Trump got $287 million debts forgiven, you get your families destroyed. This is a country you are proud of? With Trump administration, US manufacturing industry is disappearing. China is the market of the us products. When you threat your customers, they just need to find another reliable supplier. Poor American workers, unemployment and poverty will destroy their lives and families.
Boeing paid a fired CEO almost 60 million dollars before the pandemic because of the failed 737 MAX project that killed 346 people. You can call out their lies - it wasnt new plane purchases that caused them to lay off 5% of their employees. And where exactly are all the billions that they've been making for years now when they hiked fares and came up with fees for everything imaginable for passengers?
Why can't they keep their workers and take pay cuts and not pay share holders instead? If they got any bailouts they shouldn't be allowed to fire employees. Piece of shit plane that falls out of the sky doesnt help either. Bull-fucking-shit. Boeing, BY THEMSELVES, receive 20% of the US's annual defense budget.
I am shocked, I tell you. SHOCKED 😒 Wait because the dollar is going to absolutely and completely crash. maybe people should check this one know why they made this for Hit the western economy！ thank you very much for your work Boeing how much do your executives make?
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