Boeing outlines terms of voluntary layoffs, future of air travel industry
The plane-maker was already dealing with the grounding of its 737 Max
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Boeing on Monday outlined to workers its plan for voluntary layoffs, which could begin in early June and bring a wave of “several thousand” job cuts, the Seattle Times reported.
The plane-maker has struggled during the coronavirus pandemic, as the travel industry overall has been hit hard with fewer people leaving home. CEO Dave Calhoun told shareholders that he expects it will take two or three years for travel to return to the levels it saw in 2019, and even longer for the industry’s long-term trend growth to return, according to the outlet.
BOEING TO RESUME 787 PRODUCTION AT SOUTH CAROLINA
“We know we’re going to have to borrow more money in the next six months in order to get through this really difficult moment, to provide the right liquidity to the supply chain that represents our industry,” he said. “Our first priority is going to be to pay that back, the principle and the interest that goes with it.”
Eligible employees under Boeing's Voluntary Layoff Program will receive one week of pay for every full year of work up to a maximum of 26 weeks, in addition to three months of continued health care benefits, the Times reported.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 156.30 | +1.81 | +1.17% |
The potential layoffs come after Boeing resumed production in some capacity at facilities in Philadelphia, Washington state and South Carolina.
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The Chicago-based company was dealing with the fallout from the 737 Max crisis prior to the outbreak of the novel coronavirus.
Boeing did not immediately respond to FOX Business' request for comment.