Boeing has announced that it is slashing its commercial aircraft workforce by more than 15 per cent and cutting production rates in response to the coronavirus pandemic and ensuing cash crunch. According to Flight Global, the airframer announced the cuts as it reported losses of $641 million in the first quarter of 2020.
“These new reductions in our production rates and the continued impact of Covid-19 on our business will force us to reduce the size of our workforce. I’m sorry that I have to deliver this news,” Boeing chief executive, David Calhoun, said in a letter to staff.
Chicago-headquartered Boeing would cut total employment by about 10 per cent through layoffs, voluntary departures and normal staff turnover, the letter says. Boeing has some 160,000 staff; meaning about 16,000 jobs will be cut.
“We’ll have to make even deeper reductions in areas that are most exposed to the condition of our commercial customers – more than 15 per cent across our commercial airplanes and services businesses, as well as our corporate functions,” said Calhoun.