Layoff Larger Than Originally Indicated

GE Aviation is undertaking a massive layoff as the aviation industry still struggles with carrying the load imparted by the COVID-19 pandemic.

The word became official as GE Vice Chair and President and CEO, GE Aviation David Joyce published a statement about their state of business. "...The deep contraction of commercial aviation is unprecedented, affecting every customer worldwide.  Global traffic is expected to be down approximately 80% in the second quarter when compared to the start of the pandemic’s effect in China in early February.  Our aircraft manufacturers have announced reduced production schedules that will extend into 2021 and beyond reacting to the projected prolonged recovery," he explained.

He then noted that, "To protect our business, we have responded with difficult cost-cutting actions over the last two months. Unfortunately, more is required as we scale the business to the realities of our commercial market. We are developing our plan for permanent reductions to our global employee base that we anticipate will bring our total reductions this year to as much as 25% (including both voluntary and involuntary actions already announced). In GE’s earnings call last week, we shared that Aviation is developing $1 billion of cost actions and $2 billion of cash actions in 2020, which includes these anticipated reductions."

It's become a familiar refrain as Boeing cut some 10% of its primary workforce and numerous corrections have been made by Airbus and other significant players in aviation commerce.

It's been a particularly tough move by a company that has had to pare down its civilian and military powerplant divisions, heretofore its most profitable segment.

FMI: www.ge.com