Dave Calhoun, Boeing Co's chief executive officer, outlined a plan for employee layoffs Thursday, warning that the coronavirus pandemic would have a lasting impact on the global aerospace industry.
As part of the plan, eligible employees who wish to leave the company will be offered a package of wages and benefits, Calhoun said in a memo.
"We are in unknown waters. We take action based on what we know today," said Calhoun.
"We also do everything we can, which means that we continue to deliver to our retail and service customers, even if their own businesses are slow."
The company's shares rose by around 3% before the bell.
Reuters reported on Wednesday that an announcement regarding early retirement and buyout packages could be released on Thursday.
Boeing, which calls itself America's largest exporter, employs approximately 150,000 people worldwide, almost half of whom are based in marquee factories in the Puget Sound region of Seattle.
The buyout plan comes three weeks after the U.S. planner announced it would freeze overtime hiring and overtime pay, except in certain critical areas to save cash.
The coronavirus pandemic has exacerbated the years-long crisis in Boeing 737 MAX grounding after fatal accidents that killed 346 people within five months.
Boeing discontinued 737 production in January.
Last week, Boeing ceased operations at its twin-aisle facility and other facilities in the Seattle area after more than a dozen employees – at least one fatal – were infected with the virus that causes COVID-19.
"It will take some time for the aerospace industry to recover from the crisis," said Calhoun.
Boeing has requested a $ 60 billion bailout package including loan guarantees for the weak US aerospace industry.
(Except for the headline, this story was not edited by NDTV staff and published from a syndicated feed.)