The Boeing Layoffs
Boeing Layoffs The outbreak of the COVID-19 has brought the world to a halt. A worldwide quarantine is in progress, followed by cities in complete lockdown. As the death rate increases, the officials struggle hard to find a cure. The pandemic of the novel coronavirus has disrupted every major industry on the planet. With collapsing economies, industries are struggling hard to stay afloat.
The travel industry has taken the most hit. Many tourism giants have started laying off employees to restructure the company’s finances. Major companies such as Uber, Ola, Swiggy, and Zomato have laid thousands of their employees. And the latest addition to that list is Boeing, the largest planemaker in the world.
The Boeing Set To Start Involuntary Layoffs
Boeing announced on Wednesday (27/05/2020) that it’s cutting over 12,000 U.S jobs with more on the way. They include nearly 7,000 involuntary layoffs this week. The largest American planemaker is trying to restructure the global health crisis. Boeing also disclosed several thousand more layoffs in the months to come.
The company is slashing costs as a sharp drop in travel demand pulls Boeing’s falling fortunes down furthermore. The company ground its 737 Max Jet last year after two fatal crashes of the plane. The job cuts include nearly 10,000 employees in Washington State. On April 10, Boeing said that it would be cutting down 10% of its workforce. This amounts to over 160,000 employees being laid off by the end of 2020.
However, the American planemaker also raised 25 billion dollars in a bond over last month, which allowed avoiding taking Government aid. Despite that, the company recording zero orders for planes for the second time this year. This marks the worst start for the company this year since 1962.
Boeing To Offer Voluntary Layoff Packages To Employees
Though the company is thinning its workforce, it will be offering voluntary layoff packages to its employees. The company is looking to move people off the payroll with these packages. Currently, there is no production going on at the Puget Sound Area of Commerical Aircraft. However, the company is still waiting to decide on the exact figure of those packages.