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Thu, May 28, 2020

Boeing Starts Involuntary Layoffs

First 6,770 Of US Team Members Being Notified

In a letter released Wednesday by Boeing President and CEO Dave Calhoun, the Boeing boss has started involuntary layoffs as the pandemic continues to take a horrid toll on the aviation community. 

Calhoun, while noting that, "I wish there were some other way..." stated that, "Following the reduction-in-force announcement we made last month, we have concluded our voluntary layoff (VLO) program. And now we have come to the unfortunate moment of having to start involuntary layoffs (ILO). We’re notifying the first 6,770 of our U.S. team members this week that they will be affected. We will provide all the support we can to those of you impacted by the ILOs — including severance pay, COBRA health care coverage for U.S. employees and career transition services."

Boeing's international locations also are working through workforce reductions and those staffers will be notified as required.

Calhoun explained that, "The COVID-19 pandemic’s devastating impact on the airline industry means a deep cut in the number of commercial jets and services our customers will need over the next few years, which in turn means fewer jobs on our lines and in our offices. We have done our very best to project the needs of our commercial airline customers over the next several years as they begin their path to recovery."

He also added that, "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."


Admitting that Boeing, "... will have to adjust our business plans constantly until the global pandemic stops whipsawing our markets," Calhoun did note some bright points...

"We are seeing some green shoots. Some of our customers are reporting that reservations are outpacing cancellations on their flights for the first time since the pandemic started. Some countries and U.S. states are starting cautiously to open their economies again. And some parts of our business, most notably on the defense side, will continue hiring to meet customer commitments and fill critical skill positions.

The Defense, Space & Security and defense services teams have achieved a number of milestones recently, including the successful return to orbit of the reusable and autonomous X-37B Orbital Test Vehicle. We’re moving forward with our plan to restart 737 MAX production in Renton, Washington, as our return-to-service efforts continue. And our Global Services team is changing its organization to ensure it is lean and focused on the post-COVID needs of its customers."

FMI: www.boeing.com

 


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