Boeing to deepen job cuts beyond 10% plan

Bloomberg

Boeing Co is preparing to offer buyouts to employees for a second time this year as the virus-stricken planemaker extends its workforce cuts beyond the original 10% target unveiled in April.
The “voluntary layoff” will be offered largely to staffers in the company’s commercial airplanes unit, services division and corporate operation, CEO Dave Calhoun said in a message to employees. More details will be made available to workers beginning on August 24.
“I truly wish the current market demand could support the size of our workforce,” Calhoun said. “Unfortunately, layoffs are a hard but necessary step to align to our new reality,
preserve liquidity and position ourselves for the eventual return to growth.”
Boeing and European rival Airbus SE have moved to slow production, shrink payroll and pare other costs as the coronavirus pandemic causes demand for air travel and new jetliners to collapse. The US manufacturer, which is also
trying to return its grounded 737 Max to service after two fatal accidents, anticipates “a significantly smaller marketplace over the next three years,” Calhoun said.
As Boeing pushes to make painful additional cuts, the company is also “engaging in a full-scale enterprise transformation effort, evaluating every aspect of our business for opportunities to improve,” Calhoun said.