The aircraft maker has been hit by hundreds of canceled orders when airlines wrestle with a dong in demand for air travel during the Covid-19 pandemic. Boeing said in April the plan to cut 10% of its global staff of 160,000 employees in response.
“The pandemic has been devastating for our people, our business and our sector. While there have been some signs of recovery, the reality is that we are in a challenging position,” CEO Dave Calhoun said in a message to Boeing (BA) employees Monday. He said there will be a new round of purchases offered to employees next week.
“This action will extend our overall workforce reduction above the initial target of 10% and will allow more employees who want the company to leave to do so voluntarily with a pay and benefits package,” Calhoun said. “Importantly, it will also help curb extra involuntary labor activists. I really wish the current demand of the market would support the size of our workforce. Unfortunately, redundancies are a hard but necessary step to address. on our new reality. “
Last month, Boeing said it would produce aircraft at a slower rate than previously expected for the coming years. It has announced that it will stop building the 747 when executing current orders for a cargo version of the aircraft in 2022. It is considering consolidating production of the 787 Dreamliner, now built at factories in both the state of Washington and South Carolina, at one facility and another.
The cuts in April focused on Boeing’s commercial aviation unit. The final round of purchases will be offered to employees there, as well as to workers in company offices and aircraft services.
Earlier this year, 5,500 Boeing employees voted to take out buyout packages and leave the company voluntarily. The company then fired another 6,800 in May. But even as it prepares for additional cuts to reach the 16,000 mark, long-term production plans change for the worse.
It is also not yet allowed of the 737 Max to carry passengers again. The plane is grounded, and deliveries have stopped, since March of 2019 after two fatal accidents that killed 346 people.
