Boeing Co. is preparing to offer buyouts to its 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 so-called voluntary layoffs will be offered to staffers in the company’s commercial airplanes unit, services division and corporate operation, Chief Executive Officer Dave Calhoun said Monday in a message to employees that was seen by Bloomberg News.
“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 is rushing to shrink its workforce as jetliner sales dry up because of the coronavirus pandemic, which has caused an unprecedented collapse in air travel. The company is trying to conserve cash as the global aviation industry faces a slow and uncertain recovery.
“While we have seen signs of recovery from the pandemic, our industry and our customers continue to face significant challenges. We have taken proactive steps to adjust to the market realities and position our company for the recovery," a Boeing spokesperson told a media company in a statement. "As we continue to assess our workforce and in response to employee feedback, we will be offering a second voluntary layoff (VLO) opportunity for employees to depart the company voluntarily with a pay and benefits package.”
Boeing CEO Dave Calhoun told employees Monday that the package will be offered largely to staffers in the company’s commercial airplanes unit, services division and corporate operation.
Calhoun added that the company will also be “engaging in a full-scale enterprise transformation effort, evaluating every aspect of our business for opportunities to improve.”