Boeing Co announced Wednesday that more than 12,000 US jobs were lost, including the involuntary layoffs of 6,770 US workers as the largest American aircraft manufacturer was restructured in the face of the corona virus pandemic.
Boeing also announced that it plans "several thousand remaining layoffs" over the next few months, but has not said where they would take place.
The company announced in April that it would cut 10% of its global workforce from 1,60,000 employees by the end of 2020. Boeing announced on Wednesday that it had admitted 5,520 U.S. employees to voluntary layoffs and that they will leave Boeing in the coming weeks. Boeing also announced that it will inform 6,770 workers about involuntary layoffs this week.
Boeing is trying to cut costs as the demand for aircraft drops as a result of the coronavirus pandemic.
Dave Calhoun, Boeing's chief executive, emailed the employees that the "devastating impact of the pandemic on the aviation industry will mean a profound reduction in the number of commercial aircraft and services our customers will need in the coming years, which in turn means fewer jobs in our lines. " and in our offices … I wish there was another way. "
Boeing stock rose 0.7% in mid-day trading to $ 145.76.
In April, Boeing had zero orders for the second time this year, and customers canceled another 108 orders for its grounded 737 MAX aircraft. It was the worst start since 1962 in a year.
The pandemic exacerbated a crisis for the company in which the 737 MAX had found its floor last year after the second of two fatal accidents.
Last month, Boeing raised $ 25 billion on a bond offer that helped the company avoid receiving government aid.
The job cuts include more than 9,800 employees in the US state of Washington. Boeing said on Wednesday that "several thousand remaining layoffs will be made in additional tranches over the next few months".
Boeing expects delivery of 737 MAX to resume in the third quarter after regulatory approvals. Production will resume at low rates in the second quarter before gradually increasing to 31 per month in 2021.
"We are working on our plan to restart 737 MAX production in Renton, Washington," Calhoun said in his email.
Reuters reported in April 737 MAX approval is not expected until at least August.
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