Boeing cuts more than 12,000 USA jobs, warns workers its not done

Boeing workers in western Washington bracing for big job cuts

Boeing said Wednesday it had approved 5,520 USA employees to take voluntary layoffs; they will leave Boeing in the coming weeks. The wave of cuts are part of largest United States planemaker efforts to restructure in the face of the coronavirus pandemic; the worst may be yet to come.

The company also disclosed it plans "several thousand remaining layoffs" in the next few months but did not say where those would take place.

That shutdown, and closing other Boeing facilities, cost the company $137 million, and overall the pandemic has cost the manufacturer $1.7 billion, CNN reported. "For those of you who are notified, I want to offer my personal gratitude for the contributions you have made to Boeing, and I wish you and your families the very best".

The union, which represents over 17,000 Boeing employees, said the company informed them of expected layoff notices on Friday (May 29). Another 5,520 workers were approved for voluntary severance packages and will leave over the next few weeks.

Boeing has announced to employees that it will start involuntary layoffs in the United States and that the first set of nearly 7,000 job losses will be communicated this week.

"We also will have to adjust our business plans constantly until the global pandemic stops whipsawing our markets in ways that are still hard to predict", he wrote.

Boeing is slashing costs as a sharp drop in airplane demand during the pandemic worsened a crisis for the company whose 737 MAX jet was grounded past year after a second fatal crash.

In April, Boeing recorded zero orders for the second time this year and customers canceled another 108 orders for the 737 MAX, compounding its worst start to a year since 1962.

The defense and space division is stable and will help blunt the impact of the decline in air travel and demand for passenger jets, the company said.

Calhoun has pointed out that there are "some green shoots" in the aviation industry. "Some countries and USA states are starting cautiously to open their economies again", Calhoun said.

"But these signs of eventual recovery do not mean the global health and economic crisis is over", Mr Calhoun said.

Air travel within the US tumbled 96% by mid-April, to fewer than 100,000 people on some days. The Transportation Security Administration said it screened 264,843 people at airports on Tuesday, a drop of 89% compared with the same Tuesday a year ago.

Boeing is continuing to move its 737 MAX jet towards recertification in the U.S. Last month, it said it may be able to certify the jet in August, allowing deliveries to resume in Q3 should customers opt to take the jets.

Federal regulators have not yet approved Boeing's fixes, but on Wednesday, the company said workers at a factory in Renton, Washington, started assembling Max jets "at a low rate" under procedures created to prevent spreading coronavirus.



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