Aerospace company starts forced layoffs as it reduces jetliner production

Boeing Co. BA 3.31% intends to shed more than 13,000 employees, the plane maker said Wednesday, including the first round of compulsory cuts as part of previously announced plans triggered by the coronavirus-driven collapse in global air travel.

The initial tranche of cuts is far larger than indicated on Tuesday by union officials. The aerospace company said the layoff notices delivered this week will be the largest part of plans announced last month to shed about 10% of its 160,000-strong global workforce this year as it reduces jetliner production in response to airlines’ inability and unwillingness to take new aircraft after huge declines in passenger traffic.

Boeing announced roughly 6,770 involuntary layoffs among U.S. employees, while a further 5,520 had been approved for voluntary severance packages and will leave over the next few weeks.

The company said it had completed its voluntary-layoff program after offering staff buyouts last month, with several thousand more jobs set to go under compulsory cuts over the next several months. They mark the first major reductions by the company since 2017, when it laid off roughly 1,500 workers as part of a wider cost-cutting drive.

Excerpt from WSJ
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