Posted on 05/27/2020 9:54:56 AM PDT by SeekAndFind
Boeing Co said Wednesday it was eliminating more than 12,000 U.S. jobs, including involuntary layoffs of 6,770 U.S. workers as the largest American planemaker restructures in the face of the coronavirus pandemic.
Boeing also disclosed it plans "several thousand remaining layoffs" in the next few months but did not say where those would take place.
The company announced in April it would cut 10% of its worldwide workforce of 160,000 by the end of 2020. Boeing said Wednesday it had approved 5,520 U.S. employees to take voluntary layoffs and they will leave Boeing in the coming weeks. Boeing also disclosed it is 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."
Boeing shares rose 0.7% in mid-day trading to $145.76.
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 Washington State. Boeing said Wednesday "several thousand remaining layoffs will come in additional tranches over the next few months."
(Excerpt) Read more at yahoo.com ...
So? Boeing’s already a huge winner.
Everyone’s just about forgotten and/or stopped caring about their last two MAX crashes.
A lot of good a Union is when the economy is shut down. Guess they’ll vote for Fingers to get China’s economy rolling again.
Have to maintain the maximum possible profit margin.
Will they lay off US citizens or H1-Bs?
Will they lay off foreign employees and contractors?
I wouldn’t be surprised citizens first to get cut.
The pandemic worsened a crisis for the company in which the 737 MAX was grounded last year after the second of two fatal crashes.
= = =
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I don't know much but I see it as part of a larger trend where companies don't / can't afford to pay for talent and regress to a point where old solved problems show up as brand new to them.
I haven’t read anything about Airbus laying off any of their US employees. Of course, the Air Force could have had the superior, proven Airbus tankers instead of the trouble plagued ones from Boeing, but Democrat politics got in the way.
While the company kept churning out defective planes to keep the union boys (and a few girls) happy.
In fairness to Boeing the airline industry is in the toilet and even Airbus is having to lay people off. There is currently no demand for new aircraft. However, if the Air Force were interested in Saving Boeing then they could order new fighters.
You won your MAX bet, even before Covid hit.
I wish I had lost. It’s just a shame that Boeing didn’t build a whole new design instead of trying to update the 737.
The result is like building a four wheel drive, V8 powered VW Beetle.
“I wish I had lost”
Yep, it’s a win you don’t want.
A buddy of mine who flies for one of the majors thinks that if they had used the 757 airframe the new engines would have fit under the wing just fine. Trying to force them to work on a modified 737 created all of the trouble.
Boeing is now upping that number to over 24,000 cuts and asking for more furloughs.
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