Boeing to offer second layoff plan, CEO Calhoun sees smaller market ahead

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

Reuters

August 18, 2020 / 09:38 IST

Boeing (Representative image: Reuters)

Boeing Co said on August 17 it would offer employees a voluntary layoff package with pay and benefits for the second time this year, as the planemaker battles a coronavirus-induced slowdown in global air travel.

It will be offered to employees in the commercial airplanes 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 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.

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