Boeing may cull workforce by 10 percent due to COVID-19: Report

The US planemaker may announce early retirement and involuntary layoffs for staff as demand plunges due to the virus.

Boeing CEO Dave Calhoun has warned that the pandemic would have a lasting effect on the aerospace industry [File: David Ryder/Getty Images]
Boeing CEO Dave Calhoun has warned that the pandemic would have a lasting effect on the aerospace industry [File: David Ryder/Getty Images]

Boeing Co is considering a plan to cut its workforce by about 10 percent, which could involve buyouts, early retirements and involuntary layoffs at the United States-based planemaker, the Wall Street Journal newspaper reported.

The potential job cuts are expected to largely target Boeing’s commercial arm, which has been under strain due to the crisis in the global airline industry, the report on Thursday said.

Boeing declined a request by Reuters news agency for comment.

Amid the coronavirus pandemic, Boeing has been suspending production at various plants, including the manufacturing of its 787 aircraft at its facilities in South Carolina.

Last week, Boeing’s Chief Executive Officer Dave Calhoun outlined a plan of voluntary layoffs for employees, while warning that the pandemic would have a lasting effect on the aerospace industry.

The company had earlier frozen hiring and overtime pay except in certain critical areas to preserve cash.

Boeing has also been grappling with the financial fallout due to the grounding and production halt of its 737 MAX aircraft after two fatal crashes that killed 346 people. The 737 MAX has been grounded since March 2019 and Boeing halted its production in January.

Its European rival Airbus has also warned that it would miss earnings estimates after recording no new orders in February as demand for its planes plunged due to widespread travel restrictions to curb the spread of the coronavirus.

Source : News Agencies

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