Jakarta, CNBC Indonesia – Producer aircraft from the United States (US) Boeing Co announced the second time a massive mass layoff plan. Previously they had announced the same thing due to the severe impact of the Covid-19 pandemic.
On Monday (17/8/2020), Boeing announced an offer to employees of a voluntary layoff package with salaries and benefits. In April, Boeing had said it would cut up to about 10% of its 160,000 workforce or about 16,000 workers. Many of those workers have contracts due by the end of this year in its commercial aircraft division.
Boeing Chief Executive Officer Dave Calhoun said in his letter to employees that this layoff package would be offered to employees in the commercial aircraft business and the company’s services and functions.
“Unfortunately, layoffs are a difficult step but need to be done to adapt to our new realities, maintain liquidity and position ourselves so that we can eventually return to growth,” Calhoun said in the note. Reuters, Wednesday (19/8).
“We anticipate seeing a much smaller market over the next three years,” added Calhoun.
Apart from Boeing which reported disruption in its business due to the pandemic, various other businesses in the aviation sector including airlines and aviation equipment suppliers also experienced the same thing.
For Boeing, the pandemic pressure is an added burden after their business was previously disrupted by production freezes and grounded measures for its 737 MAX aircraft.
As a result, Boeing does not have a target set at this time and advises all eligible employees interested in the voluntary layoff package to apply.
“The move to extend the overall workforce reduction beyond the initial target of 10% is in response to employee feedback,” said Calhoun.
“Further details will be available to employees starting August 24,” he explained.
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