Boeing to slash 12,000 jobs in the U.S.

KNSS News
May 27, 2020 - 12:37 pm

    Boeing is slashing more than 12,000 jobs in the U.S., including involuntary layoffs of nearly 6,800 workers, as the largest American planemaker restructures in the face of the coronavirus pandemic.

    Wichita-based Spirit AeroSystems is a major subcontractor for Boeing.

    Boeing also revealed it plans "several thousand remaining layoffs" in the next few months but did not say where those would take place.

    The company announced last month it would cut 10% of its worldwide workforce of 160,000 by the end of the year. Boeing said Wednesday it had approved more than 5,500 U.S. employees to take voluntary layoffs, and those workers will leave Boeing in the coming weeks. Boeing is also notifying 6,770 workers this week of involuntary layoffs.

    Boeing is moving to cut costs as it faces a drop in airplane demand from the coronavirus pandemic.

    Boeing Chief Executive Dave Calhoun told employees in an email 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."

    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 avoid taking government aid.

    The job cuts include more than 9,800 employees in the state of Washington.

    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 next year.

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